Changing from a barter economy to a money economy can reduce transaction costs
Indicate whether the statement is true or false
True
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A monopolist faces an average total cost of $10 when it produces 400 units of its product. If it sells the 400 units at $6 per unit, ________
A) the monopolist makes a profit of $600 B) the monopolist makes a loss of $600 C) the monopolist makes a profit of $1,600 D) the monopolist makes a loss of $1,600
A financial crisis occurs when an increase in asymmetric information from a disruption in the financial system
A) causes severe adverse selection and moral hazard problems that make financial markets incapable of channeling funds efficiently. B) allows for a more efficient use of funds. C) increases economic activity. D) reduces uncertainty in the economy and increases market efficiency.
If consumers value the last unit of a product by more than it cost to produce it, welfare could be increased by ______.
a. stopping production b. raising taxes c. reducing output d. expanding output
Comparative advantage is
A. only for individuals and not countries. B. when a person can produce all goods more quickly than other people. C. when a person can produce a good at a lower opportunity cost compared to another person. D. when the production possibilities curve shifts outward to the right.