For a firm in a perfectly competitive industry, which of the following is TRUE?
A) MR = P
B) MR < P
C) AVC = ATC
D) MR > P
A
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Using the economic way of thinking, which of the statements listed below best answers the following question: Why do professional athletes tend to make more money than professional poets?
A) Americans love sports and hate poetry. B) Poets are less greedy and materialistic than athletes. C) More people are willing to pay $50 per ticket to see an athletic competition than they are to listen to a poet. D) The supply of poets is too low.
An economic model is useful only if it:
a. contains no positive statements. b. captures all the complexities of reality. c. yields accurate predictions. d. has both macro- and microeconomic applications.
Which economic concept is defined as the measure of how responsive consumers are to price change?
a. consumer expectation b. consumer taste c. decreasing marginal utility d. elasticity of demand
If the government needs to raise revenue to pay for a public good, the ideal tax structure would tax
A. only citizens who state that they will use the public good. B. all citizens in proportion to their willingness to pay for the public good. C. all citizens by the same proportion of their income. D. all citizens by the same amount.