The fact that total wealth is fixed at any point in time is referred to as the
a. budget constraint.
b. wealth constraint.
c. wealth effect.
d. hard asset effect.
e. income effect.
B
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If an isocost line crosses the isoquant twice, a cost minimizing firm will
A) use a different isocost line to select the bundle of inputs. B) use the input bundle associated with the intersection on the higher point of the isoquant. C) use the input bundle associated with the intersection on the lower point of the isoquant. D) Both B and C.
Which of the following functions is not performed by prices in a free market?
A. Guiding the allocation of resources B. Conveying information about the marginal cost of production C. Making the distribution of income more equitable D. Replacing the need for governmental supervision of production
Refer to the graph shown. If the market price is P2, the firm will produce:
A. Q3 and break even. B. Q3 and earn a profit. C. Q4 and incur a loss. D. Q2 and incur a loss.
In 1962, Social Security and Medicare combined made up less than ______ percent of GDP.
a. 1 b. 5 c. 8 d. 10