In a free market economy, people are free to manufacture buses out of gold, rather than steel. So why aren't buses made out of gold?
A) Although it meets all economic laws, gold buses would violate the laws of physics and mechanical engineering.
B) It is ridiculously unprofitable to make gold buses.
C) The AFL-CIO wouldn't allow buses to be made from gold.
D) There's only one individual with a patent on gold buses, and he refuses to sell it to other potential manufacturers.
B
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If the quantity of capital per worker in the economy increases
A) the amount of money held by workers increases. B) labor productivity increases. C) the stock of human capital necessarily increases. D) the stock of financial assets held by the public increases.
The horizontal axis on a time-series graph
A) measures the variable being graphed. B) measures units of time such as years. C) runs parallel to the y-axis. D) measures how the variable being graphed changes.
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the average variable cost of production when the firm hires
7 workers? a. $12.67 b. $11 c. 81 cents d. 75 cents
Status and ego considerations in consumption are economic explanations of demand.
Answer the following statement true (T) or false (F)