Individuals who do harm to others while behaving irresponsibly or negligently would, in most U.S. states, encounter
A. limitation on their civil liability.
B. unlimited civil liability.
C. total elimination of all civil liability.
D. free public provision of a competent defense attorney.
Answer: B
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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.
If workers always see inflation coming, and if they demand wage increases in advance so that inflation does not erode real wages, then the economy's aggregate supply curve on the AD-AS diagram will
a. be a vertical line corresponding to potential GDP. b. be a horizontal line corresponding to potential GDP. c. slope downward. d. slope upward.
Pigou buys a house for $500,000, rents it for $2,000 per month for four years, and then sells it for $600,000. What is Pigou's per-year rate of return?
A. 4.8 percent. B. 9.8 percent. C. 20 percent. D. 39.2 percent.
The ________ curve intersects the average variable cost curve at the minimum value of the average variable cost curve.
A. total variable cost B. total cost C. average fixed cost D. marginal cost