Assume that there is no way to prevent someone from using an interstate highway, regardless of whether or not she helps pay for it. This characteristic is associated with:
A. rival goods.
B. complementary goods.
C. capital goods.
D. public goods.
Answer: D
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When a restaurant stays open for lunch service even though few customers patronize the restaurant for lunch, which of the following principles is (are) best demonstrated? (i) Fixed costs are sunk in the short run. (ii) In the short run, only fixed costs are important to the decision to stay open for lunch. (iii) If revenue exceeds variable cost, the restaurant owner is making a smart decision to
remain open for lunch. a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)
Loans made between borrowers and lenders are:
A. not part of either parties' assets or liabilities until the loans are repaid. B. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders. C. liabilities to the lenders and assets to the borrowers since the borrower obtains the funds. D. liabilities to both the lenders and the borrowers.
Which of the following is a problem with the price system that can lead to fluctuations in output?
A. The price system works silently in the background. B. Prices can be slow to adjust. C. Prices may be flexible. D. All of these
The formula q/L represents
A. the average product of labor. B. the marginal product of labor. C. the capital-to-labor ratio. D. total product.