The payoff matrix refers to
a. the difference between total revenue and total cost at different price levels
b. a listing of the rewards and penalties associated with pursuing various strategies
c. the difference between average and marginal cost for the non-competitive firm
d. the difference between average and marginal revenue in a non-competitive industry
e. the difference between average variable and average total cost to the firm
B
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A price taker is a buyer or seller who:
A. has complete control over setting the market price. B. can influence the market price. C. has no control over setting the market price. D. has the goal of maximizing market share, not profits.
PPP-adjustment:
A. gives us a more realistic sense of differences in living standards around the world. B. allows us to see that poorer countries are not quite so poor as suggested by their nominal GDP per capita. C. gives us a realistic sense of how the living standards of the world's poorest citizens translate into dollar terms. D. All of these statements are true.
Rent seeking lowers profits by
a. shifting the market demand curve to the right b. shifting the market supply curve to the left c. shifting the ATC curve upward d. shifting the ATC curve downward e. flattening the marginal revenue curve
"The resources now going into the War on Terrorism and into improved airport security would save more lives if they were invested in medical research." This statement most clearly reflects which of the following?
a. The best test of an economic theory is its ability to predict. b. There is no such thing as a free lunch--the use of scarce resources always has an opportunity cost. c. selfishness; if people were not selfish, we could have more of everything. d. The value of goods can be determined objectively.