Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same
production costs. Refer to the information given. If no explicit property right is given over the forest land, then:
A. a property right will be established when trees are cut down and brought to market.
B. there is no property right over the harvested timber.
C. Alex and Ben will likely work out an agreement on harvesting and replanting the land.
D. that implies that government owns and regulates its use.
Answer: A
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The direct relationship between changes in price and changes in quantity supplied is
A) a change in supply. B) shown by a shift in the supply curve. C) the law of supply. D) the law of relative production.
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:
A. $8,950. B. $8,750. C. $6,550. D. $6,300.
The Dow-Jones Industrial Average index is all of the following except
A. an index based on 30 actively traded large companies on the New York Stock Exchange. B. representative of the U.S. economy. C. the oldest U.S. stock index. D. the most widely followed U.S. stock index.
A stock is part ownership in the company.
Answer the following statement true (T) or false (F)