At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves? A) They must intersect, with TC cutting TR from below. B) They must intersect, with TC cutting TR from above. C) They must be tangent to each other. D) They cannot be tangent to each other. […]
Date: September 9th, 2020
According to the law of diminishing returns A) the total product of an input will eventually be negative. B) the total product of an input will eventually decline. C) the marginal product of an input will eventually be negative. D) the marginal product of an input will eventually decline. E) none of the above […]
Date: September 9th, 2020
The Clinton administration has recommended an increase in the tax on yachts to help pay for government programs. Which of the following is true? A) The burden of this tax will fall entirely on yacht consumers. B) The burden of this tax will fall entirely on yacht manufacturers. C) The sales of yachts will decrease. […]
Date: September 9th, 2020
The restricted opportunity cause of poverty is due to government destroying incentives. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
If you accept the big brother cause of poverty, it might be helpful if the government did less instead of more. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The formula Es/(Es – Ed) is used to calculate the A) deadweight loss from price support programs. B) increase in consumer surplus from a price ceiling. C) fraction of a specific tax that is passed through to consumers. D) none of the above ANSWER C
Date: September 9th, 2020
When sellers have more information about products than buyers do, we would expect A) sellers to get higher prices for their goods than they could otherwise. B) buyers to pay lower prices for goods than they would otherwise. C) high-quality goods to drive low-quality goods out of the market. D) low-quality goods to drive high-quality […]
Date: September 9th, 2020
The flawed character cause of poverty refers to individual defects in aspiration or ability. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Common property resources like fish stocks in open waters tend to be over-utilized because: A) the marginal social cost is less than the private marginal cost. B) the marginal social cost is always equal to the private marginal cost. C) the marginal social cost is greater than the private marginal cost. D) none of the […]
Date: September 9th, 2020
A firm maximizes profit by operating at the level of output where A) average revenue equals average cost. B) average revenue equals average variable cost. C) total costs are minimized. D) marginal revenue equals marginal cost. E) marginal revenue exceeds marginal cost by the greatest amount. ANSWER D
Date: September 9th, 2020
