If a product has only a few acceptable substitutes, demand for the product is most likely to be:
A. very inelastic.
B. inelastic.
C. elastic.
D. very elastic.
Answer: B
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Among the sources of economic inefficiency are all of the following EXCEPT
A) price regulations. B) rapid technological change. C) monopoly. D) taxes and subsidies.
Assume the following cost information about Fred's widget company: Its fixed cost is $27, and its total variable cost is $18 for 1 unit; $33 for 2; $45 for 3; $60 for 4; and $78 for 5 . Given this information: a. average fixed cost rises from an output of four to an output of five
b. average fixed cost is greater than marginal cost for the second unit produced. c. the output level which minimizes average total cost is four units. d. average variable cost rises, but average total cost falls, as output increases from four to five.
The thing or things that a company does better than its competitors is called its
A) comparative advantage B) absolute advantage C) core competency D) positive externality
The largest source of federal revenue in the United States is:
a. Social insurance tax b. the corporate income tax c. the individual income tax d. Foreign aid to the U.S.