When the production of a good involves several inputs, an increase in the cost of one input will usually cause total costs to
A) rise more than in proportion.
B) rise less than in proportion.
C) remain unchanged.
D) rise by the exact amount of the input price increase.
B
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The value of marginal product equals ________ multiplied by ________
A) the good's market price; marginal cost B) the good's market price; marginal product C) marginal cost; marginal product D) marginal revenue; total product
When people smoke cigarettes, their friends and family members may become sick. This affects GDP by
a. reducing GDP by the amount of medical care needed. b. reducing GDP by the cost of the cigarettes purchased. c. increasing GDP by the cost of the medical care and the cost of the cigarettes purchased. d. decreasing GDP by the cost of the medical care and increasing GDP by the cost of the cigarettes purchased.
The vertical axis of the aggregate demand and aggregate supply graph has the
a) output of goods. b) output of services. c) real GDP. d) the price level.
An economist looks at data that suggests that people are making decisions that are based on rules of thumb. She concludes that people tend to make decisions that are based on habit and not on the economic decision rule. She is most likely a(n):
A. behavioral economist. B. irrational economist. C. traditional economist. D. engineering economist.