Can phenomena as diverse as pencil production and highway traffic be legitimately studied by economists?
A) No. One is properly in the field of business, the other in city planning.
B) No. Although production is properly in the field of economics, highway traffic is only properly studied by planners and environmentalists.
C) Yes. Both phenomena emerge from choices of individuals with limited information.
D) Yes. Both phenomena emerge in the market system without any human intervention.
C
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According to ________, the economy is normally at potential GDP
A) real business cycle models B) the adaptive expectations theory C) the short-run Phillips curve D) new Keynesian economists
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer this hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
Given the scenario described, if the market price of hammers was $13, then total producer surplus would be: A. $9. B. $30. C. $17. D. $7.
The Clayton Act
a. was passed in 1890 b. created the Federal Trade Commission c. abolished antitrust policy in this country d. attempted to give explicit content to what formed an antitrust violation e. made mergers between corporations illegal
When Lorenzo eats 1 slice of pizza for lunch, his total utility is 23, and when he eats 2 slices of pizza for lunch, his total utility is 42. Assuming that Lorenzo's marginal utility from eating pizza is always positive, we can infer that his total utility from eating 3 slices of pizza at lunch is:
A. greater than 42 and less than 46. B. greater than 23 and less than 42. C. greater than 42 and less than 61. D. greater than 42 and less than 84.