When economists assume that people are rational and respond to incentives, they mean
A) people act with kindness. B) people act in their own self-interest.
C) people are altruistic. D) people are selfish.
B
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Which of the following is true?
i. Marginal cost is measured by the maximum price that consumers are willing to pay for another unit of a good or service. ii. Producer surplus equals marginal benefit minus price, summed over the quantity produced. iii. A supply curve is a marginal cost curve. A) only iii B) only i C) only ii D) i and ii E) i and iii
Most illegal immigrants are found in occupations
a. that require licenses. b. that require two years of college. c. that require certificates. d. that require little formal education.
Which of the following steps should Bufton Dairy, a firm selling dairy products, take in order to earn positive economic profits?
a. Offering products that are identical to those of its rivals b. Producing at the highest point on its average total cost curve c. Acquiring most of its rivals d. Selling only one dairy product
The learning curve is the relationship between
A) returns to scale and cumulative costs. B) marginal costs and current output. C) marginal product of labor and current output. D) average costs and cumulative output.