Economic analysis assumes that
a. individuals act only out of selfish motives.
b. although individuals are at times selfish and at times unselfish, only their selfish actions may be predicted.
c. people are basically humanitarian, and their actions are, therefore, impossible to predict.
d. changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior.
D
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In a two-good economy, the price of video games is $40 and the price of energy drinks is $2. If the annual output of this economy is 100 video games and 500 drinks, the GDP is ________
A) $50,080 B) $25,200 C) $5,000 D) $20,200 E) none of the above
Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a perfectly competitive market, then the marginal revenue product of this additional worker is:
a. $78. b. $72. c. $36. d. $39. e. $6.
Higher energy prices can be used to explain the productivity slowdown in the period from
a. 1948 to 1973. b. 1973 to 1995. c. 1973 to 1980. d. 1995 to 2000.
Economic indicators, like unemployment claims and the average workweek, which change before real GDP changes, are called:
A. leading. B. lagging. C. coincident. D. structural.