Refer to Figure 5.6. Which diagram shows a decrease in income with bread being normal and soup being inferior?
A. A
B. B
C. C
D. D
D. D
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Marginal physical product is
a. the increase in input usage resulting from an increase in revenue. b. the same as marginal revenue product. c. equal to average physical product when a monopoly firm is in equilibrium. d. the increase in output stemming from a one-unit increase in input.
Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. Propose two solutions for the town that will lead to efficiency.
What will be an ideal response?
Instituting a rent control program will most likely lead to
A. an excess quantity supplied of rental units. B. a shortage of rental units. C. overly elaborate and expensive construction. D. an efficient allocation of existing units among consumers.
Consider the following data for a nation
The country's real GDP declined between years:
A.
1 and 2
B.
2 and 3
C.
3 and 4
D.
4 and 5