If the government decides to build highly subsidized dorms for all college students, then we will see
a. an upward movement along the AD curve
b. a downward movement along the AD curve
c. the AD curve shift to the left
d. the AD curve shift to the right
e. the AS curve shift to the right
D
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From the economic point of view, "joint costs" are problematic because
A) they can only be determined in markets for illicit drugs. B) there is no way to correctly allocate joint costs. C) they can be measured only by the most sophisticated accounting techniques. D) there is no way to discuss the concept meaningfully.
Homer's Holesome Donuts has determined that its profit-maximizing quantity is 10,000 donuts per year. Homer's earns $12,000 in revenue from the sale of those donuts. Homer's has two costs
First he pays $16,000 in annual rental payments for its five-year lease on its store. Second Homer incurs an additional cost of $5,000 for ingredients. Should Homer's shut down in the short run? A) Yes, because he is incurring an economic loss. B) Yes, because he cannot cover all of his fixed costs. C) No, because is making positive economic profit. D) No, because he can cover all of his variable costs.
An economist observes two consumers in a supermarket. One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola. Both colas sell for the same price and the ages and incomes of the consumers are also the same
Based on this information, how would the economist explain the consumers' choices? A) Both consumers should have purchased less than a case because they would be able to buy more later. B) Both consumers should have considered buying other colas that had lower prices. C) Apparently, the consumers had different tastes. D) One of the consumers made the wrong choice, but it is impossible to say which one.
A small business owner who is earning a positive economic profit, no matter how small, is doing better than if she sold her business and went to work for another firm
a. True b. False Indicate whether the statement is true or false