While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
A) 75 cents.
B) zero.
C) 80 cents.
D) 20 cents.
D) 20 cents.
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When politicians debated the North American Free Trade Agreement (NAFTA), some told stories of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor of protection was being used?
A) Save domestic jobs argument B) National security argument C) Anti-dumping argument D) Infant-industry argument E) Diversity and stability argument
"Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase
This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right." Which of the following correctly comments on this statement? A) The statement is false because oranges are inferior goods; apples are normal goods. B) The statement is false because one cannot assume that apples and oranges are substitutes for all consumers. C) The statement will be true if consumer tastes for apples and oranges do not change. D) The statement is false because a change in the price of apples would not change the demand for apples.
Which of the following statements describes the presence of diminishing returns? All else equal,
a. Marginal product curve is constant b. Marginal product curve is falling and negative c. Marginal product curve is positive and rising d. Marginal product curve is positive and falling
Public choice theory suggests politicians will be most likely to favor redistribution of income from
a. the rich to the poor. b. unorganized taxpayers to well-organized interest groups. c. middle-income taxpayers to both the rich and the poor. d. well-organized businesses and labor groups to consumers.