A firm that sells at a price below average cost is losing money
a. True
b. False
Indicate whether the statement is true or false
True
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If a local government collects taxes of $500,000, has $350,000 of government consumption expenditures, makes transfer payments of $100,000, and has no interest payments or investment, its budget would
A. be in balance with neither a surplus nor a deficit. B. show a surplus of $150,000. C. show a deficit of $50,000. D. show a surplus of $50,000.
A farmer discovers that the total cost of growing 50 acres of eggplant is $50,000 and that the total cost of growing 51 acres of eggplant is $52,000. The marginal cost of the 51st acre of eggplant is
A) $52,000. B) $50,000. C) $2,000. D) $1,000.
Total product is maximized where
A) average product is maximized. B) marginal product is maximized. C) average product is equal to 0. D) marginal product is equal to 0.
The slope of an individual's "consumption-leisure" budget constraint is:
a. 24 hours minus the number of leisure hours. b. total consumption divided by the wage rate. c. the real wage rate. d. the negative of the real wage rate.