Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. Why does the marginal cost of producing crude oil increase as the volume of crude oil increases?
A. The different costs reflect the higher costs of extracting oil at different sources.
B. The different costs reflect the different costs of transporting oil to the United States.
C. The different costs reflect the higher taxes that the government imposes on higher production of oil.
D. The different costs reflect the different exchange rates needed to buy the oil from different countries.
Answer: A
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The assertion that income accrues to people as a consequence of interactions among suppliers and demanders
A) amounts to an endorsement of the existing system. B) amounts to an endorsement of the pattern of income distribution. C) ignores the fact that the interactions are often unfair. D) offers a way of approaching the issue of income distribution.
A company’s gearing is
a) the ratio of debt to overall assets b) the ratio of stock market valuation to book value c) the share price divided by corporate earnings d) its stockholder’s equity e) the ratio of taxes paid to the overall wage bill
How do we measure economic growth?
A. increases in the price level, as indicated by the GDP chain price index B. increases in nominal GDP C. increases in real GDP D. increases in the labor force
Refer to the graph shown. When the market is in equilibrium, total surplus is area:
A. A plus area F plus area E plus area D. B. A plus area F. C. E plus area F. D. A plus area B.