Nobody needs soda. So why do people drink it?
A) They deny the data and believe they really do need soda.
B) The expected additional benefits of another soda outweigh the additional costs.
C) There are no substitutes for soda.
D) Soda is a good for the people who consume it, and therefore they will drink it at any price.
B
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Economic growth can be shown by ____________________ production possibilities curve.
A. an outward shift of the B. an inward shift of the C. a movement from one point to another along the D. a movement to a point inside the
A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $650, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?
A. 4 hours B. 3 hours C. 2 hours D. 1 hour
Variable costs are
a. costs that vary with output b. not important in decision making c. costs that do not vary with output d. equal to total costs
Due to resource scarcity,
a. some economic activities have an opportunity cost b. all economic activities have an opportunity cost c. no economic activities have an opportunity cost d. economic activities have opportunity costs equal to their market prices e. economic activities have opportunity costs generally lower than their market prices