Marginal cost is defined as the increase in total cost resulting from an increase in:
a. one unit of output.
b. output of 100 units.
c. a firm's plant size.
d. one unit of labor.
a
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Explain the differences between frictional unemployment and structural unemployment
What will be an ideal response?
The Herfindahl-Hirschman index is measured by
A) adding the market shares of all firms in an industry. B) adding the squares of the market shares of all firms in an industry. C) squaring the sum of the market shares of the all firms in an industry. D) adding the market shares of the four largest firms in an industry.
If a production possibilities curve (PPC) has capital on the vertical axis and consumer goods on the horizontal axis, which of the following is true?
a. Greater emphasis on the production of consumer goods today leads to greater outward shifts in the PPC, thus increasing the wealth of people in the future. b. Greater emphasis on the production of capital today leads to greater outward shifts in the PPC, thus increasing the wealth of people in the future. c. There is a tradeoff between emphasizing the production of capital today to benefit people today versus emphasizing the production of consumer goods today that will generate benefits in the future. d. Greater emphasis on the production of capital today leads to future inward shifts in the PPC, thus decreasing the wealth of people in the future.
If a good is considered "inferior" then:
(a) As its price rises, less of it will be bought. (b) As its price falls, more of it will be purchased. (c) As the consumer's income increases less of the good is purchased. (d) As the consumer's income increases more of the good is purchased.