The shutdown point for a perfectly competitive firm is the
A. lowest point on the ATC curve.
B. point at which a firm's long-run supply curve ends.
C. lowest point on the marginal cost curve.
D. lowest point on the AVC curve.
Answer: D
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The economic efficiency of any process will be evaluated by
A) the proportion of marginal to non-marginal costs. B) the ratio of work done to energy supplied. C) comparing what is gained from what is sacrificed. D) the relationship of supply to demand.
All of the following are in-kind benefit programs, except
A. food stamps. B. Medicaid. C. energy assistance. D. SSI.
Based on the idea of opportunity cost, which of the following students would be most likely to drop out of college before completing their degree?
a. a senior mathematics major with a solid B average b. a junior physical therapy student who has just read about the fantastic job offers available to students with degrees in her area c. a star college football player in his junior year that just received a $5 million offer from a professional team d. a junior economics major who wants to attend graduate school
New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto-workers accept lower wages, and automobile insurance becomes more expensive?
a. Price will rise. b. Price will fall. c. Price will stay exactly the same. d. The price change will be ambiguous.