A grocery store sells soup for $1.50 a can, or $2.50 for two cans. To a customer, the marginal cost of buying the second can of soup is
A. $1.
B. $1.25.
C. $1.50.
D. $2.50.
Answer: A
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Forecasts of an inevitable exhaustion of essential natural resources are “simply beside the point” because higher prices (i) reduce quantity demanded; (ii) stimulate supply; (iii) stimulate alternative technology.
A. i only. B. ii only. C. iii only. D. i, ii, and iii.
The capabilities approach considers:
A. how much human capital improves over time in a society. B. what people can be and how much people can do over time in a society. C. how much human capital one society has relative to another. D. how much total output changes over time in a society.
During normal times, Fed pushes the federal funds down when it wants to give the economy a boost and
A. pushes it up when it wants to restrain the economy. B. pushes it down when it wants to restrain the economy. C. does not tamper with the federal funds when it wants to restrain the economy. D. None of the above is correct.
Which of the following statements is FALSE?
A) Included in the firm's short-run production function are both fixed and variable inputs. B) An efficient firm can obtain more output than the production function shows. C) The production function shows the technical relationship between a firm's inputs and outputs. D) The production function presents the technically efficient methods of combining inputs to produce output.