A total cost curve shows the largest amount of a product a firm can produce with a minimum cost
a. True
b. False
Indicate whether the statement is true or false
False
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Why does the ceteris paribus assumption allow economists to focus on the variable they are interested in? Give an example.
What will be an ideal response?
Which country best reinforces the idea that the higher the real GDP per capita is, the more satisfied people are in that country?
a. India
b. China
c. Russia
d. Norway
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
A student enters a McDonald's fast-food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The student says: "No thanks." For the student described above, we can say that
A. diminishing marginal utility did not occur, he simply wanted to quit eating. B. the law of diminishing marginal utility only applies to durable goods. C. diminishing marginal utility began as soon as he had eaten the first Big Mac. D. diminishing marginal utility set in only after he had consumed the second Big Mac.