If John's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar:
A. John will not purchase any more candy bars.
B. John will increase his total satisfaction by purchasing the candy bar.
C. the opportunity cost of the candy bar is lower than the price.
D. John will decrease his total utility if he purchases the candy bar.
Answer: B
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Which of the following statements best illustrates the concept of derived demand?
A. When the price of gasoline goes up, the demand for motor oil will decline. B. As income goes up, the demand for farm products will increase by a smaller relative amount. C. A decline in the price of margarine will reduce the demand for butter. D. A decline in the demand for shoes will cause the demand for leather to decline.
If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________
A) 10.0 B) 6.0 C) 0.25 D) 16.0 E) 4.0
What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
a. An amount equal to (price less average variable cost). b. An amount equal to total variable. c. Zero. d. An amount equal to total fixed cost.
Which of the following items is included in the calculation of GDP?
a. Purchase of 100 shares of Microsoft stock. b. Purchase of a used car. c. Sale of Gulf War military surplus. d. None of these choices would be included. e. The value of a homemaker's services.