According to traditional economics, rational consumers seek to maximize their
a. “bang for the buck”
b. similarity to other consumers
c. number of substitutes
d. “bounded rationality”
a. “bang for the buck”
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Use the following table which shows the aggregate demand and aggregate supply schedules for a hypothetical economy to answer the next question.Real Domestic Output Demanded (in billions)Price Level (index value)Real Domestic Output Supplied (in billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000The equilibrium price and output levels will be ________.
A. 250 and $7,000 B. 200 and $5,000 C. 300 and $8,000 D. 200 and $6,000
A firm increases output from 2 to 4 units per week. As it does its total costs rise from €1200 to €1500, while its fixed costs remain constant at €800. The firms MC is:
(a) €100. (b) €150. (c) €300. (d) Zero.
According to the World View chart in the text, from highest to lowest real GDP per capita, which is correct?
A. United States, Japan, France, Canada, China. B. United States, Canada, Germany, Japan, South Korea. C. United States, China, India, Jordan, Germany, Japan, Russia. D. United States, China, Japan, Germany, Russia.
Forces that cause long-run average cost to fall as output expands are known as
a. returns to scale. b. scale efficiencies. c. economies of scale. d. optimizing forces.