The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of the:
A. equilibrium principle.
B. principle of comparative advantage.
C. scarcity principle.
D. incentive principle.
Answer: B
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The average total cost of production is measured by
a. average variable cost + average fixed cost b. fixed cost + variable cost c. average variable cost – average fixed cost d. marginal cost + variable cost e. fixed cost + marginal cost
Last year Best Bank received $60 million in interest payments from borrowers, and $20 million in loans were written off as uncollectible. The bank paid out $22 million in interest to its depositors and collected $35 million for various fees it charged. Administration costs were $15 million, and taxes were $3 million. What was the value of Best Bank's accounting profits?
a. $35 million b. $15 million c. $50 million d. $57 million
The largest category of federal government spending is growing because
a. the U.S. must spend more on national defense due to the war against terror. b. the elderly population is increasing due to rising life expectancies. c. expenditures on space exploration have increased dramatically. d. expenditures on school voucher programs have increased dramatically.
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint is
A. BD. B. CD. C. AD. D. It is not shown on this graph.