Jane has noticed that she used to pay $2.75 for a hamburger and now she pays $3.0. Which of the following statements is TRUE?
A. The law of supply explains why the price of hamburgers has increased.
B. The money price of hamburgers has increased.
C. Jane will stop consuming hamburgers.
D. The relative price of hamburgers has increased compared to hotdogs.
Answer: B
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A perfectly competitive firm is producing at the quantity where marginal cost is $6 and average total cost is $4. The price of the good is $5. To maximize its profit, this firm should
A) raise its price. B) lower its price. C) increase its output. D) decrease its output. E) increase the price it charges for its product.
If an individual's indifference curve map does not obey the assumption of a diminishing MRS, then
a. the individual will not maximize utility. b. the individual will buy none of good X. c. tangencies of indifference curves to the budget constraint may not be points of utility maximization. d. the budget constraint cannot be tangent to an appropriate indifference curve.
Which country was among the lowest ranking by the World Bank for effective protection of property rights and rule-based governance?
a. North Korea b. Cuba c. Afghanistan d. Iraq
The concept of private property is
A) a legal absolute. B) a matter of degree. C) a moral absolute. D) an invention of economists.