Which of these is the key assumption of the Classical school of economic thought?
a. An economy is self-adjusting in nature
b. Wages and prices are sticky downward.
c. Economic agents are rational in behavior.
d. Labor is the source of wealth in an economy.
a
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According to the research of economic historians, Southern farms
(a) realized the gains from regional specialization in the production of cotton, tobacco, sugar and rice. (b) used the gang system to increase the production of slaves. (c) were far larger, on average, than farms in the North. (d) were all of the above.
The above figure shows the market for steel ingots. An externality can be seen because
A) the social marginal cost exceeds the private marginal cost. B) the private marginal cost exceeds the social marginal cost. C) the optimal quantity of steel is zero. D) not enough steel gets produced by the competitive market.
The marginal revenue product curve represents a firm's demand curve for a resource
a. True b. False
Refer to the below table for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the tariff would generate government revenues of:
A. $600
B. $400
C. $800
D. $1,200