To maximize its profit, in the short run a perfectly competitive firm decides
A) what price to charge for its product.
B) what quantity of output to produce.
C) whether to exit the market.
D) whether to increase the size of its plant.
E) how much advertising it should undertake.
B
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In consumer equilibrium, Harold consumes pizza, sodas, and other goods. Pizza and soda are complements for Harold. The price of a pizza rises while his income remains the same. Harold then consumes
A) more pizza and less soda. B) more pizza and more soda. C) less pizza and less soda. D) less pizza and more soda.
The biggest flaw in the logic of the labor argument is the failure to consider
A) the needs of developing countries. B) the impact of tariffs on inflation. C) the differences in national productivity levels. D) the strategy of multinational businesses. E) the impact on employment levels.
Why do economists believe that it is socially optimal to have some amount of pollution?
What will be an ideal response?
The reason why national defense is commonly provided by the government, while food is not, is that food:
a. is too essential to survival to be provided by a bureaucratic organization. b. manufacturers have successfully lobbied the government to stay out of the food industry. c. can easily be withheld from those who refuse to pay for it. d. provision is subject to a free-rider problem.