To engage in economic reasoning, one must compare:
A. marginal cost, sunk cost, and total benefit.
B. total cost and total benefit.
C. marginal cost and marginal benefit.
D. sunk cost and marginal cost.
Answer: C
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For a construction company that builds houses, which of the following costs would be a fixed cost?
a. the $20 per hour wage paid to a construction foreman b. the $30,000 per year salary paid to the company's bookkeeper c. the $2 per worker-hour paid to the state government for workers' compensation insurance d. All of the above are correct.
At the Pampered Pet Salon the marginal products of the first, second, and third workers are 50, 36, and 25 dogs washed, respectively. The total product (number of dogs washed) of the first two workers is
A. 11. B. 50. C. 86. D. 111.
The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his
A) marginal utility is positive and increasing. B) marginal utility is positive but decreasing. C) marginal utility is negative but increasing. D) marginal utility is negative and decreasing.
The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____
a. freedom of the press b. freedom of speech c. freedom of movement d. freedom of exchange