Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living
Indicate whether the statement is true or false
TRUE
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Microsoft hires marketing and sales specialists to decide what prices it should set for its products, whereas a wealthy corn farmer in Iowa, who sells his output in the world commodity market, does not. Why is this so?
A) because unlike Microsoft, the wealthy corn farmer is probably a monopolist B) because the wealthy corn farmer is a price taker who chooses his optimal output independently of market price but Microsoft's optimal output depends on the price it selects C) because Microsoft could potentially lose sales if it sets prices indiscriminately D) because Microsoft is large enough to hire the best people in the field
Assuming that automobiles are normal goods, a rise in consumer income, other things being equal, will cause:
a. the demand curve for automobiles to shift to the left. b. the demand curve for automobiles to shift to the right. c. a downward movement along the demand curve for automobiles. d. an upward movement along the demand curve for automobiles.
Suppose you plan on eating 50 potato chips. As you start consuming potato chips, your marginal utility is very high, but it begins to fall slowly until you’ve eaten 10 chips. After you have eaten 10 chips, your marginal utility decreases even faster with each additional chip. Marginal utility continues to decline until you’ve eaten 49 chips. The fiftieth chip does not give you any additional utility. After 50 chips, your mouth gets so salty that it is unpleasant to eat any more, so marginal utility is actually negative for those chips. How many chips should you eat in order to maximize your total utility?
a. 1 b. 10 c. 49 d. 51
Capital purchases by businesses of newly produced durables is known as
A. the income approach. B. inventory investment. C. the expenditure approach. D. fixed investment.