Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption
a. True
b. False
Indicate whether the statement is true or false
True
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A firm is currently producing 200 units of output using 60 hours of labor and 80 hours of capital. The marginal product of labor is 12 units of output per hour, and the marginal product of capital is 15 units of output per hour. If the wage rate is $6 per hour and the rental rate is $3 per hour, then
a. the firm's use of labor and capital is cost-efficient. b. the firm should use more labor and less capital. c. the firm should use more capital and less labor. d. we cannot determine if the firm's use of inputs is efficient without more information.
The fishing and whaling occupations in the early colonies:
a. never amounted to a significant economic force. b. were a major influence in the early colonial economy. c. started only in the eighteenth century. d. were mixed in their economic impact, with fishing being the least important and whaling being most important.
Psychology and sociology focus on what creates desires for goods, but economics focuses on what consumers actually purchase.
Answer the following statement true (T) or false (F)
In the process of long-term profit maximization, the business makes decisions under the assumption that it can
A. not change any of its costs. B. change only short-term costs. C. vary all the inputs. D. change only long-term costs.