The economizing problem faced by a society is
A. to establish prices that are fair for both producers and consumers.
B. a consequence of the fact that productive resources are scarce relative to economic wants.
C. to achieve a more equitable distribution of income in the society.
D. that product prices often rise more rapidly than incomes of consumers.
Answer: B
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The following simultaneous equations describe the demand and supply for a particular good in a competitive market.
Qi= 
1Pi+ 
1zi1 + ui1
Qi= 2Pi+ 2zi2 + ui2
Which of the following are the endogenous variables in this model?
A. Pi,zi1, and zi2
B. Pi and Qi
C. zi1, and zi2
D. ui1 and ui2
Which product would be likely to be bought in the same quantity even if it doubled in price?
(A) Shoes (B) Computers (C) Telephones (D) Pencils
Kodak introduced to the marketplace a digital camera that uses no film but that takes photos that can be shown on personal computers. This is an example of:
A. economies of scale. B. product innovation. C. process innovation. D. venture capital.
When the long-run average total cost curve is horizontal, a firm has economies of scale.
Answer the following statement true (T) or false (F)