The demand for an input is:
A. sloping upward.
B. derived from input owner's profit-maximizing condition.
C. determined by MPL = W.
D. the VMP of the input.
Answer: D
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One of the most common uses of GDP is to:
A. track changes in an economy over time. B. see which country has the fairest distribution of wealth. C. evaluate different standards of living across countries. D. measure the amount of money has been made in the economy.
The price elasticity of supply at a point is:
A. the percentage change in price divided by the percentage change in quantity supplied. B. the change in price divided by the change in quantity supplied. C. the change in quantity supplied divided by the change in price. D. the percentage change in quantity supplied divided by the percentage change in price.
Total utility can be positive even when marginal utility is negative.
Answer the following statement true (T) or false (F)
Economies of scale occur when a firm's
a. marginal costs are constant as output increases. b. long-run average total costs are decreasing as output increases. c. long-run average total costs are increasing as output increases. d. marginal costs are equal to average total costs for all levels of output.