In perfect competition, a profit-maximizing business will expand production until its _________ equals the market price.
A. marginal product
B. marginal cost
C. marginal revenue
D. average cost
Answer: B
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In Figure 3-2, a point such as E
A. is not obtainable. B. is an efficient use of resources. C. represents an inefficient allocation of resources. D. indicates that the society is a capitalist society.
The accompanying graph depicts demand.
The price elasticity of demand at point C is:
A. 3/4. B. 16/3. C. 3/8. D. 3/16.
The state of Georgia offers free college tuition to high school students with a "B" average. In 2007, the state raised the requirement so that fewer students qualified for the scholarship
At the same time, Georgia increased state spending on health care. Suppose that college education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes A) are example of a tradeoff. B) are an example of incentives. C) will cause a shift out of the PPF. D) will cause a shift in the of the PPF.
The sound economic institutions and policies needed for economic growth and prosperity
a. emerge from the political process, if they emerge at all. b. are unaffected by political decision-making and constitutional rules. c. are virtually guaranteed to emerge, if democracy becomes the form of government in a nation. d. can only emerge from a democracy