In a market economy:
A. collective decision-making is more important than individual decision-making.
B. goods and services are distributed as if by an "invisible hand" to those who can not afford them.
C. profit provides an incentive to be productive.
D. the distribution of wealth is equitably distributed.
Answer: C
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The marginal cost curve intersects:
A) the total cost curve at its minimum. B) the average fixed cost curve at its maximum. C) the average fixed cost curve at its minimum. D) both the average variable cost curve and the average total cost curve at their minimum.
If a general sales tax is enacted, we can predict with certainty that individuals will work less
a. True b. False
Other things being equal, the effect of an increase in the price of Coca-Cola would cause a(n):
a. upward movement along the demand curve for Coca-Cola. b. leftward shift in the demand curve for Coca-Cola. c. downward movement along the demand curve for Coca-Cola. d. rightward shift in the demand curve for Coca-Cola.
A monopolist that does not price discriminate will set the output level where
a. P = MC b. P = MR c. TR = TC d. MR = MC e. P = ATC