Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would expect:
A. the demand for gasoline to decrease.
B. the quantity demanded of sport utility vehicles to decrease.
C. the demand for sport utility vehicles to decrease.
D. the demand for sport utility vehicles to increase.
Answer: C
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A) the invention of the air conditioner B) the invention of LCD televisions C) an increase in corn output resulting from genetic engineering D) all of the above
Game theory assumes that to compute the likely outcome of games, one needs to assume that players act
a. Rationally b. Optimally c. In their own self-interest d. All the above
In an input market, economic rent is defined as the:
a. total remuneration paid to a factor of production. b. minimum amount required to retain a factor of production in its present use. c. total cost for a firm of renting land, equipment, and buildings. d. extent to which payments to a factor of production exceed the minimum amount required to retain it in its present use.
Suppose the short-run production function is q = L0.5. If the marginal cost of producing the tenth unit is $5, what is the wage per unit of labor?
A) $1 B) $0.5 C) $0.25 D) It cannot be determined without more information.