With positive externalities, market equilibrium occurs at a quantity that is greater than the socially optimal output
a. True
b. False
Indicate whether the statement is true or false
False
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Keynes used the term "animal spirits" to refer to
a. policy makers harming the economy in the pursuit of self interest. b. arbitrary changes in attitudes of household and firms. c. mean-spirited economists who believed in the classical dichotomy. d. firms' relentless efforts to maximize profits.
If a business's total economic cost of producing 1,500 units of a product is $15,000 and this output sold to consumers for $16,500, then the firm would earn an economic profit of:
a. $16,500 b. $1,500 c. $15,000 d. $1,000
Product differentiation occurs when
A. A completely new process is used to produce a familiar product. B. Buyers perceive differences in the products of several companies. C. One firm produces many varieties of a product. D. Sellers perceive differences in the products of several companies.
A fall in the price of a firm's output
A) decreases the firm's demand for labor. B) increases the firm's demand for labor. C) decreases the firm's supply of labor. D) increases the firm's supply of labor.