The production decisions of perfectly competitive firms follow one of the Ten Principles of Economics, which states that rational people
a. consider sunk costs.
b. equate prices to the average costs of production.
c. prefer to purchase products from smaller rather than larger firms.
d. think at the margin.
d
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Suppose the market clearing price for apples rises from $2.00 to $3.00 per pound, and the overall market clearing output decreases from 1 million to 1/2 million pounds. How can we explain the increase in price and decrease in market output?
A) Supply decreased and demand remained unchanged. B) Supply increased and demand remained unchanged. C) Demand increased and supply remained unchanged. D) Demand decreased and supply remained unchanged.
Net exports equals
A) exports of goods and services minus imports of goods and services. B) imports of goods and services minus exports of goods and services. C) the government sector balance plus the private sector balance. D) Both answers A and C are correct.
The conservative theory of poverty blames _____ for welfare dependency.
A. the poor B. the government C. both the poor and the government D. neither the poor nor the government
In which of the following countries are substantial co-payments typically required as a part of the health care system?
A) Canada and the United States B) Japan and Canada C) the United States and Japan D) the United States and the United Kingdom