The study of economics
A. is a very narrow endeavor.
B. is a way of analyzing decision-making processes caused by scarcity.
C. focuses on how a business should function.
D. is concerned with proving that capitalism is better than socialism.
B. is a way of analyzing decision-making processes caused by scarcity.
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The producer surplus to a monopolist must be
A) less than zero or the firm is in violation of anti-trust statutes. B) at least as great as the producer surplus in a competitive market. C) positive, otherwise why would the monopoly produce? D) the same as for a competitive market.
The question "What are you going to do with that major?" implicitly questions
A) how much you learn in that major. B) whether the major should be offered on campus. C) how much the market values the human capital developed in the major. D) western bias.
The benefit to some consumer of the last unit of a good consumed is
a. represented by the height of the supply curve at that quantity b. negative if the producer is suffering economic loss c. decreases at an increasing rate in a competitive product market d. is zero e. represented by the height of the demand curve at that quantity
The marginal productivity principle implies that
a. quantity demanded of an input normally declines as the input price falls. b. at equilibrium, profit from the last unit of input will be zero. c. for maximizing profit, marginal revenue product should be greater than price. d. marginal productivity of inputs increase when price of inputs increase.