In Figure 5.2, at quantities larger than Q1,
A. total revenue is rising.
B. price elasticity is less than 1.
C. price and total revenue are directly related.
D. All of these
Answer: B
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Hutch Technology makes computer monitors, which sell for $100 each. What is the opportunity cost of 10 monitors?
A. $1,000 B. The other goods that could be produced with the resources that produce the 10 monitors C. The profits that Hutch earns when 10 monitors are sold D. The lost profits that Hutch if the monitors are not produced E. All of the responses are correct.
If wages and prices become extremely flexible ________
A) there is no trade off between inflation and unemployment B) unemployment can hardly deviate from the natural rate C) it becomes very difficult to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above
Adam Smith believed that if people were free to pursue their own interests,
A) less would be produced than if government planners were in charge of the economy. B) they would generally apply their talents to unproductive activities that would generate little value to society. C) they would have little incentive to undertake productive activities. D) the public interest would be served quite well.
Exhibit 14-3 Impact of flights on house valueEach time Orville flies over Wilber's house, the noise reduces the value of Wilbur's house. The table shows the profits to Orville of each flight, and the value of Wilbur's house. Numberof flights Totalprofits Marginalprofits Value of Wilbur'shouse 1 $10,000 $10,000 $100,000 2 18,000 8,000 95,000 3 24,000 6,000 90,000 4 28,000 4,000 85,000 5 30,000 2,000 80,000 As shown in Exhibit 14-3, at the socially efficient number of flights, what will be the market value of Orville's house?
A. $100,000. B. $95,000. C. $90,000. D. $85,000.