What is outlet bias?
A) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality
B) the tendency for households to spend their money at discount stores as prices rise
C) the tendency for consumers to purchase newer, more technologically advanced products even though they have higher prices
D) the tendency for households to spend more money over time
B
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An efficient allocation of labor occurs when the
A) marginal benefit to workers exceeds the marginal benefit to firms. B) marginal benefit to firms exceeds the marginal benefit to workers. C) marginal cost to workers is equal to the marginal benefit to firms. D) marginal cost and marginal benefit of both workers and the firms are equal to zero. E) marginal benefit of workers exceeds the marginal cost to firms by as much as possible.
If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm's total variable cost at that level of output is
A) $1,000. B) $700. C) $300. D) impossible to determine without additional information.
Which of the following factors is most likely to cause the aggregate demand curve to shift rightward?
a. An increase in savings b. An increase in household wealth c. An increase in tax rates d. A decrease in government spending
A major feature of the "Freedom to Farm" Act of 1996 was the:
A. Elimination of price supports and acreage allotments for many agricultural crops B. Expansion of government price supports for many agricultural crops C. Bolstering of the foreign demand for U.S. agricultural products D. Increased support for research on farm productivity to help expand the supply of farm products