The cost of producing an additional unit of a good is not the same as the average cost of the good
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Behavioral economists examine choices that consumers make that are not economically rational
Economists generally assume that people are rational; that is, they weigh the benefits and costs of an action and choose an action only if the benefits outweigh the costs. Why do consumers not act rationally when the result is that they make themselves worse off?
A shortage of textbooks will cause
a. a decrease in the supply of textbooks b. a decrease in the demand for textbooks c. both an increase in the supply of textbooks and a decrease in the demand for textbooks d. an increase in the price of textbooks, caused by a shift of either the supply curve or the demand curve e. an increase in the price of textbooks
Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $1,600 billion, and the MPC = 0.8 . In order to bring the economy to a full-employment real GDP,
a. a recessionary gap must be bridged by increasing aggregate expenditures by $80 billion. b. an inflationary gap must be bridged by cutting aggregate expenditures by $80 billion. c. nothing is needed to bring the economy into full employment equilibrium. d. a recessionary gap must be bridged by increasing aggregate expenditures by $400 billion. e. an inflationary gap must be bridged by cutting aggregate expenditures by $400 billion.
Which of the following is not an advantage of the chain weighted CPI over the fixed CPI?
a. the chain-type index includes newer products b. the chain index incorporates the increase in the quality of goods c. the chain index includes discounting and the substitution of products d. the chain index includes the price of the product only at standard prices