Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it.
B. There is an excess demand for parks in the neighborhood.
C. There is an excess supply of parks in the neighborhood.
D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
Answer: A
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For a household, the opportunity cost of not working is the
A) price level. B) nominal wage rate. C) demand for labor. D) cost of living. E) real wage rate.
In Chapter 11, the production function variable A has been given several different names. Which of the following is NOT one of them?
A) autonomous growth factor B) infrastructure C) multifactor productivity D) residual
Suppose that at a firm's profit-maximizing level of output, its total revenue is $1,250, the total cost of its variable factors of production is $1,000, and its total fixed cost is $500. This firm will ________ in the short run, and will ________ in the long run.
A. shut down; reopen for business B. earn a loss; earn a profit C. not shut down; exit the industry D. earn a profit; earn a loss
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be
A. CD. B. BD. C. AD. D. Her new possible budget constraint is not shown on this graph.