The value of total output decreases when labor leaves one industry and goes to another and capital leaves the second industry and goes to the first. This indicates that
A) the first situation was not efficient.
B) the second situation is efficient.
C) price is greater than marginal cost.
D) it would be efficient to return to the first situation.
Answer: D
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Use the following table to answer the next question.YearReal GDPPopulation2008$20,000200200940,000400201060,000400201170,000500Real GDP per capita ________ between 2008 and 2009.
A. remains constant B. increases C. decreases D. cannot be calculated
Which of the following is not an argument in favor of restricting trade?
a. to preserve national security b. to prevent dumping c. to increase consumer surplus d. to protect infant industries e. to protect declining industries
A monopolistic competitor can expect to earn an economic profit in the long run
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Multimillionaires do not experience scarcity because they can afford all the goods and services they desire. 2. Economists consider the concept of need difficult to define because it is hard to compare “needs” among people. 3. “Average cost” is another name for “marginal cost.” 4. Economists assume that people make the best choice they can because they do not want to make themselves worse off.