Consider two goods: peanuts and crackers. The slope of the consumer's budget constraint is measured by the
a. consumer's income divided by the price of crackers.
b. relative price of peanuts and crackers.
c. consumer's marginal rate of substitution.
d. number of peanuts purchased divided by the number of crackers purchased.
b
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Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year,
sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total contribution to GDP?
Which of the following measures productivity?
A. GDP per worker. B. Percentage increase in GDP. C. GDP per capita. D. The ratio of current GDP to GDP in the base period.
If a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 units, then one can infer the firm is a:
A. perfect competitor. B. monopolist. C. price taker. D. profit maximizer.
To earn the greatest possible profit, a firm must:
A. maximize revenue less cost. B. minimize revenue less cost. C. maximize quantity at any price. D. maximize price at any quantity.