The income effect is the concept that changes in consumption of a good result from changes in purchasing power
a. True
b. False
Indicate whether the statement is true or false
True
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The result that perfectly competitive firms produce at the lowest per-unit cost is derived from the assumptions of
A. homogeneous products. B. few sellers. C. firms facing horizontal demand curves. D. free entry and exit.
Which of the following have hurt those at the low end of the income distribution and helped those at the high end?
a. economic forces b. technological change c. immigration d. all of the above
What does this equation represent? $2,000 for monthly rent and equipment leases / 400 units of output = $5
a. average variable cost b. average fixed cost c. diminishing marginal cost d. total average cost
If the United States, at the point where it is currently producing, must give up the production of 500 bicycles (B) to produce 20 additional tractors (T) with the same resources, the opportunity cost of producing 100 bicycles is _______ tractor(s).
A) 1 B) 4 C) 25 D) 100