When price is greater than both marginal cost and average variable cost, the perfectly competitive firm
A) is maximizing economic profit.
B) should increase its level of output.
C) should reduce its level of output.
D) should stop production.
B
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Which answer ranks the elasticities of supply from highest to lowest?
a. market-day, short-run, long-run b. short-run, long-run, market-day c. long-run, short-run, market-day d. short-run, market-day, long-run e. long-run, market-day, short-run
Briefly describe the influence of majority rule on the individual consumption–payment link.
What will be an ideal response?
If the growth rate of population is greater than a nation's growth rate of real GDP, then its real GDP per person
A) falls. B) rises. C) does not change. D) might rise, fall, or not change. E) cannot be measured.
"After every fall election, the weather starts to turn cold, therefore elections cause cold weather." This statement
a. confuses positive and normative analysis. b. commits the fallacy of composition. c. fails to recognize that association is not causation. d. confuses macroeconomics with microeconomics.