Jimmy grows corn. His total revenue and total cost are in the above table. What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?
What will be an ideal response?
Jimmy's profit is greatest if he grows either 40,000 or 50,000 bushels of corn. His (economic) profit at either amount is $10,000 a week. Between 40,000 and 50,000 bushels of corn, Jimmy's marginal revenue is $30,000, or $3 per bushel and his marginal cost is $30,000, or $3 per bushel.
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Suppose an economy's exchange rate system is the gold standard and vast tracks of gold are discovered, as is what happened in the United States in 1849. If the economy is at full employment, what should this discovery do?
A) It should lower the money supply and cause deflation. B) It should raise the money supply and cause inflation. C) It should raise the money supply and cause disinflation. D) It should raise the money supply but have no impact on the price level. E) it should not change the money supply.
The Clayton Act:
A) was passed in 1985 over the objections of then President Reagan. B) outlaws racial discrimination in the practice of business. C) outlaws the ownership of stock by the U.S. government unless it is in public enterprises. D) outlaws price discrimination unless based on cost differences.
Economics is an empirical science, which means that economists
A. must use laboratory experiments to test their theories. B. try to prove their models are true by referring to logic. C. look for evidence to determine whether the model is useful or not. D. evaluate a model or theory by whether its assumptions are consistent with the real world.
Which of the following was the leading import (by value) of the United States in 2012?
A. Petroleum B. Apparel C. Automobiles D. Household appliances