Total profit is maximized where
a. MR = MC.
b. marginal profit is zero.
c. the slope of the marginal profit curve is zero.
d. All of the above are correct.
d
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Which of the following is classified as a final good or service?
i. tires bought by GM to put on new Tahoes ii. mustard bought by Subway to put on its sub sandwiches iii. your purchase of online access to the Wall Street Journal A) iii only B) i and ii C) i, ii and iii D) ii only E) ii and iii
Which of the following is true about the consumer price index (CPI) and the GDP price index? a. Both measures weigh prices by quantities consumed in some base year
b. Both yield identical numbers for price level changes for any two years. c. Both CPI and GDP price index underestimate changes in the price level in an economy. d. The CPI measures changes in relative prices of goods, while the GDP price index measures changes in the absolute price level of a fixed basket of goods and services. e. CPI includes products that are widely used, while GDP price index includes all goods and services.
When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
a. a comparative advantage in production of the product. b. an absolute advantage in production of the product. c. a higher opportunity cost of producing the product. d. no incentive to import the product, regardless of the cost-price conditions for other products.
Figure 7.2
Refer to Figure 7.2. Assume that Ashley faces budget line AB with her $60 income. Then the opportunity cost to her of a hamburger is:
A. one book. B. one half of a book. C. one third of a book. D. one fourth of a book.