When economists observe someone make a choice, they assume the individual chooses:
A. what gives her the least utility.
B. what gives her the most utility.
C. what creates the most utility for society.
D. what is the most efficient choice.
B. what gives her the most utility.
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Drug companies protect their monopolies over various drugs they develop by utilizing
A) patent protection. B) low cost production. C) diseconomies of scale. D) zero economic profits in the long run.
Let the marginal product of labor and capital be denoted by MPL and MPK respectively. The price of labor and capital are given by PL and PK respectively. Which of the following equations gives the condition for producing a given level of output at the least cost combination of inputs?
a. PL × PK = MPL × MPK b. PL × MPL = PK × MPK c. MPL ÷ PK = MPK ÷ PL d. PL ÷ PK = MPL ÷ MPK
Decisions to cut taxes are made by ________ and are an example of ________ policy.
A. Congress; fiscal B. the President; monetary C. the Federal Reserve; fiscal D. Congress; monetary
Phase of the business cycle during which the economy is growing more slowly than usual
What will be an ideal response?