Which of the following about capital income is not correct?
A) It refers to a firm's revenue.
B) It is also called profit income.
C) It goes to the firms.
D) It accounts for less than 35% of income in advanced countries.
A
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Imagine that a firm expands the size of its plant, doubling its total cost of production but more than doubling its output. This situation is known as
A. a violation of the law of diminishing returns. B. economies of scale. C. constant returns to scale. D. diseconomies of scale.
The law of diminishing marginal utility states that total utility will decrease at an increasing rate as additional units of a commodity are consumed.
Answer the following statement true (T) or false (F)
Making bread at home would be more efficient than making it in commercial bakeries
A) for people who place a sufficiently high value on home baked bread. B) if the ingredients used to make bread increased sufficiently in price. C) if the price of bread made in commercial bakeries did not reflect the efficiency of bakeries. D) if there were no labor costs in home baked bread.
When the price of a normal good rises, the income effect results in ________ in the quantity demanded and the substitution effect results in ________ in the quantity demanded
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease