In economics the assumption is made that consumers and firms will make choices that maximize the ________ of each activity.
a. total net benefit
b. total benefit
c. sum of total benefit and total cost
d. product of total benefit and total cost
a. total net benefit
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To the extent that the value of money is less predictable, it becomes
A) more acceptable as a store of value. B) less acceptable as a medium of exchange. C) more acceptable as a standard of deferred payment. D) more acceptable as a unit of account.
Items bought by individuals to provide personal enjoyment are termed
A) consumption goods. B) personal goods. C) consumption or investment goods. D) standard goods. E) pleasure goods.
In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good
a. The price of inputs decrease b. The price of a complement increases c. The number of producers in the market increases d. Income increases e. The price of a substitute in production increases
Comment on the following statement: "When there are no externalities present, the level of output for a private good produced by a perfectly competitive firm is efficient."
What will be an ideal response?