Early doubters of the claims that Head Start could end the cycle of poverty based their conclusions on
A. what they perceived to be statistical flaws in the original research.
B. the claim that no matter how good the program was it could not make up for the home environment.
C. the claim that the original research was fraudulent.
D. A) and B).
Answer: B
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You and your roommate go to a Sunday brunch at the local restaurant. All you can eat for $4.95. You enjoyed your meal. Your roommate didn't care for it at all. Each of you paid your bill in full. Who incurred a sunk cost?
A) Both you and your roommate B) Only you C) Only your roommate D) Neither of you
The use of a two-part price in a regulated natural monopoly
A) maximizes the deadweight loss. B) allows the firm to maximize profits. C) may make it possible for the firm to obey a marginal cost pricing rule and not go out of business. D) All of the above answers are correct.
If you suddenly have the misfortune of screening positive for lung cancer, then your consumption function will most likely
A. shift upward. B. shift downward. C. not shift, your disposable income does not change. D. not shift, but force you to increase your expenditures along the consumption function.
The efficient scale of the firm is the quantity of output that
a. maximizes marginal product. b. maximizes profit. c. minimizes average total cost. d. minimizes average variable cost.