As a method of resource allocation, market price
A) means those who are willing and able to pay get a particular good or service.
B) works well when self-interest must be suppressed.
C) works best inside firms and government departments.
D) is efficient when there is no effective way to distinguish among potential users of a scarce resource.
A
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Refer to the figure above. This country's exports equal
A) CE units of X. B) GH units of Y. C) CD units of X. D) DE units of Y.
Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. If the market for oranges is perfectly competitive, Bright Orange will determine its profit-maximizing output level based on ________.
A) the market price of an orange B) the market price of an ounce of orange juice C) the market price of two ounces of orange juice D) the market price of an orange peel
Variable costs are
a. costs that vary with output b. equal marginal costs c. not considered in decision-making d. equal to total costs
When economists say the quantity demanded of a product has increased, they mean the:
a. demand curve has shifted to the left. b. demand curve has shifted to the right. c. price of the product has fallen, and consequently, consumers are buying more of it. d. price of the product has risen, and consequently, consumers are buying less of it.