A firm sells 20 units of a good at a price of $5 per unit. If the average cost of production of the good equals $3 per unit, the firm's revenue is:
A) $40.
B) $60.
C) $100.
D) $120.
C
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Increased saving today means
a. more consumption today and in the future b. less consumption today and in the future c. more consumption today and less in the future d. less consumption today and more in the future e. more income today, but the net effect of increased income on the balance between consumption and saving cannot be determined in advance
Positive externalities can be more easily measured than negative externalities
Indicate whether the statement is true or false
If an economist says "the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus," this means that
A) individuals don't like high-priced oranges. B) as the price of oranges rises, individuals' preferences change and they no longer like oranges as much as they once did. C) as the price of oranges rises, individuals' preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges. D) the higher the price of oranges, the fewer oranges individuals will buy, assuming that people have economic motives.
The U.S. textile industry is relatively small because the United States imports most of its clothing. A clear result of the importation of clothing is that:
A. the quality of clothing is lower than it would be without imports. B. the price of clothing is lower than it would be without imports. C. there is less variety available than there would be without imports. D. the price of clothing is higher than it would be without imports.