The main reason that finished goods are scarce is that
a. raw material resources are scarce.
b. factories are not operated efficiently.
c. distribution systems are clogged.
d. taxes are destroying work incentives.
e. All of the above are correct.
a
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If a price floor is not binding, then
a. the equilibrium price is above the price floor.
b. the equilibrium price is below the price floor.
c. there will be a surplus in the market.
d. there will be a shortage in the market.
Which of the following is NOT a criticism of international institutions such as the IMF, the World Bank, or the WTO?
A) They violate national sovereignty by imposing unwanted domestic policies. B) They fail to understand the effects of their policies on the vulnerable. C) Their decision-making is biased in favor of underdeveloped nations. D) They ignore potentially large adjustment costs for developing nations of implementing their policies.
Increases in total utility from the consumption of a good decrease as more is consumed. This statement is
A) the law of diminishing marginal utility. B) the law of average utility. C) the consumer optimum. D) not consistent with the assumption of rational behavior.
Refer to the table below. The average variable cost of producing 3 units of output is:
A. $9.33
B. $10
C. $12.67
D. $38