Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3 and the firm produces the output where MR = MC, its profit is:
A. -$300.
B. -$600.
C. -$900.
D. -$1,200.
Answer: D
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Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals
A) $0. B) $1. C) $2. D) $3.
Most individual's income peaks when they are about
A) 30. B) 40. C) 50. D) 60.
From a public choice viewpoint, the persistent budget deficits of recent decades are
a. surprising, because politicians have a strong incentive to balance the government's budget. b. an expected result, because the political incentive structure makes it attractive for politicians to levy taxes rather than spend on current programs. c. surprising, because politicians have a strong incentive to run budget surpluses and thereby indicate that their actions have generated a profit. d. an expected result, because the political incentive structure makes it attractive for politicians to spend on current programs rather than levy taxes.
MV in the equation of exchange is also defined as
A) national income. B) total expenditures. C) personal income. D) Real GDP.