What incentive motivates a manufacturer to sell a product?
a) making profits on sales
b) putting others out of buisness
c) pleasing the consumer
d) popularity of the product
Ans: a) making profits on sales
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The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. The marginal external cost of producing 200 billion kilowatt hours per day is ________ per kilowatt
A) 0¢ B) 10¢ C) 20¢ D) 15¢ E) 5¢
The largest component of aggregate expenditure is
a. consumption spending b. investment spending c. government purchases d. net exports e. a virtual tie between consumption spending and government purchases
When the housing market bubble burst, many people found that:
A. the value of their homes exceeded their mortgage loans. B. they owed more than their house was now worth. C. it was much easier to sell their home. D. there was a limited number of houses for sale.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.