How is the total cost of a factory or other production site determined?
(A) Fixed cost plus marginal cost.
(B) Fixed cost plus variable cost.
(C) Marginal cost plus variable cost.
(D) Marginal cost plus output cost.
Ans: (B) Fixed cost plus variable cost.
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Which of the following is an example of conspicuous consumption?
A. Purchasing an expensive automobile to impress others B. Purchasing of hip-hugger pants because pop stars wear them C. Avoiding cheap computers because low price indicates low quality D. Purchasing fast food because it is cheap and convenient
The Federal Reserve System is an:
Agency ran by popularly-elected officials Agency that is under the direction of the President Agency that is controlled by Congress Independent agency of government
Holding everything else constant, the less wealth a household has
A. the less it will consume now, but the more it will consume in the future. B. the more it will consume now, but the less it will consume in the future. C. the less it will consume, both now and in the future. D. the more it will consume, both now and in the future.
Refer to Table 3-1. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee rises from $4 to $5, the market quantity demanded would
A) decrease by 115 lbs. B) decrease by 35 lbs. C) increase by 35 lbs. D) increase by 115 lbs.