Economists assume that the goal of a firm is to:
a. maximize total revenue.
b. maximize total profit.
c. minimize production.
d. maximize utility.
b
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A time-series graph reveals whether there is a ________, which represents ________
A) trend in a variable; a general tendency for the variable to rise or fall B) relationship between two variables; a cross-section relationship C) trends in two variables; unrelated variables D) relationship between two variables; a trend in a variable E) cross-section relationship; a general tendency for the variables to rise or fall
Tara buys four music cassettes when the price is $10 and two cassettes when the price is $14 . Her price elasticity of demand is:
a. 0. b. 1. c. 2. d. 3. e. 4.
Which of the following is a behavioral implication of bounded rationality?
A) unbounded selfishness B) a rule of thumb C) a rational mistake D) a nervous breakdown
Generally, economists believe that crowding out is
A. complete fiction. B. important but less than complete; one extra dollar of government spending decreases private spending by less than a dollar. C. actually reversed; one extra dollar of government spending increases private spending. D. complete; one extra dollar in government spending decreases private spending by a dollar.