In the long run, an entrepreneur who owns a perfectly competitive firm will earn an income just equal to what she could earn in the next best alternative use of her time
a. True
b. False
A
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Fast food places do not pay their workers less than minimum wage because it is against the law. Which of Kohlberg's stages does this describe?
a. stage 1 b. stage 2 c. stage 3 d. stage 4
Given the uncertainty about the effects of macro policy, economists generally propose that
A) macro policies should be more active, the lower the level of unemployment or inflation. B) changes in money growth should only be used for fine tuning the economy, not for correcting large imbalances (such as high inflation). C) money growth should be set at zero by constitutional amendment. D) elected officials should have more input in the determination of monetary policy. E) none of the above
Marginalism is
A. the study of how societies choose to use scarce resources. B. the process of analyzing the additional costs or benefits arising from a decision. C. the best alternative that we forgo when making a decision. D. a market situation in which profit opportunities are eliminated almost instantaneously.
If consumption increases by $400 when income increases by $500, then the marginal propensity to consume is
A) 900. B) 100. C) 1.20. D) 0.80.