According to the concept of the "invisible hand," if Susie opens and operates a profitable childcare center, then:
A. government should regulate the business to ensure quality.
B. the profit Susie earns indicates that she is overcharging for her services.
C. she has served society's interests by providing a desired good or service.
D. this demonstrates that consumer sovereignty is not present in this market.
Answer: C
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If income increases, then with regard to expensive cuts of steak, it is likely that the demand curve
a. shifts to the right b. shifts to the left c. becomes steeper d. does not change e. becomes flatter
If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your school are $100 per unit, then the marginal revenue product for your school from hiring that instructor that semester is:
A. $100. B. $300. C. $30,000. D. $60,000.
When the price of oysters decreases 25%, quantity demanded is unchanged. The price elasticity of demand for oysters is
A. inelastic. B. perfectly inelastic. C. elastic. D. unitary elastic.
Investment spending is inversely related to the interest rate
a. True b. False