Total fixed costs:
A. are zero when no output is produced.
B. are positive even when no output is produced.
C. increase as output increases.
D. decrease as output increases.
Answer: B
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The productivity curve is a relationship between ________ and ________
A) real GDP per hour of labor; capital per hour of labor B) real GDP per hour of labor; capital C) capital per hour of labor; labor per hour of capital D) real GDP; hours of labor E) real GDP; capital
The multiplier is equal to
a. the reciprocal of MPC. b. the reciprocal of MPS. c. MPC + MPS. d. MPC/MPS.
If the minimum price of plums (high-quality) decreases, the market will become thinner.
Answer the following statement true (T) or false (F)
Supermodel Linda Evangelista has been quoted as saying, "[I] don't wake up for less than $10,000 a day." If Ms. Evangelista is paid $15,000 for her next daylong photo shoot, then
A. she is receiving economic rent to labor equal to $5,000. B. she is being paid $15,000 to cover her opportunity cost. C. the entire $15,000 would be considered economic rent to labor. D. the first $10,000 she receives is economic rent to labor and the next $5,000 is more economic rent.