People supply their resources to the lowest-paying alternative, other things constant
Indicate whether the statement is true or false
false
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Use the following consumption schedule to answer the next question.
The graph above shows the relationship between consumption and income. The ratio LM/PL would be a measure of the
A. average propensity to consume. B. marginal propensity to consume. C. marginal propensity to save. D. average propensity to save.
Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is investing in companies that are
A) always going to be profitable. B) productively efficient. C) both productively and allocatively efficient. D) allocatively efficient.
CANOES-R-US makes canoes. It buys the shell of the canoe from another firm for $300 and uses its labor and intermediate goods to make the canoe. It sells the finished canoe to a retail canoe store for $800. The retail canoe store then sells the canoe to a consumer for $1,200.
A) $1,200. B) $800. C) $500. D) $400.
After spending $400,000 to build your dream home, you recently discovered that after less than one year the foundation is cracking. Further investigation reveals that the contractor used substandard concrete. Is there a role for the public sector in this situation?