Marginal cost pricing means that a firm charges
A. A price that is marginally lower than the average total cost of production.
B. Any price as long as average total cost is greater than marginal cost.
C. A price that is marginally higher than the average total cost of production.
D. A price that is equal to the marginal cost of production.
Answer: D
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Which of the following statements is an accurate statement about the Social Security (OASDI) program?
A) The program is financed by voluntary contributions. B) Only 50 percent of workers are covered by OASDI. C) Benefits are based on financial need. D) The program transfers income from those who work to those who do not work.
The aggregate demand curve slopes downward for the same reason that a microeconomic demand curve slopes downward
a. True b. False
If complete equality of income were legislated, which of the following would economics predict?
a. People would become richer. b. Society would gain utility from the extra goods produced. c. Individuals would willingly work longer hours and thus produce more. d. The incentive to produce and perform efficiently would be virtually eliminated.
Which of the following factors would indicate an inelastic demand?
A. The good is a necessity, rather than a luxury. B. The good represents a small fraction of the budget. C. Demand is measured over a shorter period of time. D. All of these