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Question
The annual cost of producing the entire output of goods and services in the economy
A) includes financial transactions.
B) can be calculated entirely on the basis of financial transactions.
C) includes durable goods but excludes nondurable goods.
D) is total income.
Answer
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Related questions
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The regulation of the prices charged by insurance companies is known asA) the Federal Register. B) social regulation.C) the market share test. D) economic regulation.
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If the marginal product curve is intersecting the average product curve, we know thatA) the average variable cost curve is intersecting the average total cost curve.B) the marginal cost curve is intersecting the average fixed cost curve. C) the average total cost curve lies above the marginal cost curve.D) the marginal cost curve is intersecting the average total cost curve.
Q:
Suppose that the implicit cost for a business was $1,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $6 per item. We can conclude that the firmʹsA) accounting profit was $6,000, and its economic profit was $0. B) accounting and economic profits were both $0.C) accounting profit was $1,000, and economic profit cannot be determined. D) accounting profit was $1,000, and economic profit was $0.
Q:
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Q:
A monopolistic competitor is like a competitive firm in the long run, because
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B) it earns zero economic profits
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Q:
In a perfectly competitive market, if P > MC, then
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B) too much output is being produced.
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D) the firm is paying a price for resources that is too high.
Q:
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Q:
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Q:
The concept of the production function implies that a firm using resources inefficiently willA) obtain less output than the theoretical production function shows. B) obtain more output than the theoretical production function shows.C) obtain exactly the amount that the theoretical production function shows. D) not be subject to diminishing marginal product.
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Use the above figure. When the budget line rotates from ʺbʺ to ʺcʺA) the price of product J increases. B) the price of product J decreases. C) the price of product K increases. D) the price of product K decreases.
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Q:
The law passed by Congress in 1914 that was designed to sharpen or define further the vagueness of the Sherman Act is calledA) the Robinson-Patman Act. B) the Wheeler-Lea Act.C) the Clayton Act. D) the Federal Trade Commission Act.
Q:
Which of the following best describes a situation of economic efficiency?A) A firm produces to the point at which P = AVC, with MR < MC. B) A firm produces to the point at which P = ATC, with MC < MR. C) A firm produces to the point at which MR = AFC, with P = AVC. D) A firm produces to the point at which MR = MC, with P = MC.
Q:
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Q:
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Q:
The health care market in the United States is characterized by
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B) third-party payment of health care costs.
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D) all of the above
Q:
Why should a perfect competitor produce at which price equals marginal cost?
Q:
Which of the following is a true statement?A) Any property right system will yield a situation in which all externalities are internalized. B) Voluntary agreements can always yield a situation in which all externalities are internalized.C) Opportunity costs always exist with whoever has property rights.D) Opportunity costs turn external costs into social costs.
Q:
ʺThe market demand curve for labor is the horizontal summation of the labor demand curves of all firms.ʺ Do you agree or disagree? Why?
Q:
A monopolist is maximizing profit at an output rate of 1,000 units per month. At this output rate, the price that its customers are willing and able to pay is $8 per unit, average total cost is $5 per unit, and marginal cost is $6 per unit. It may be concluded that at this monthly output rate, marginal revenue isA) $5 per unit, and the monopolist earns zero economic profits.B) $6 per unit, and the monopolist earns economic profits of $2,000 per month. C) $6 per unit, and the monopolist earns economic losses of $1,000 per month. D) $6 per unit, and the monopolist earns economic profits of $3,000 per month.
Q:
Suppose that during a given time period the implicit cost for a business was $1,500 and that the explicit cost was $6,000. Also suppose that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firmʹsA) accounting profit was $1,000, and its economic profit was -$500. B) accounting and economic profits were both $1000.C) accounting profit was -$500, and economic profit was $1,000. D) accounting profit was $1000, and economic profit was -$1,500.
Q:
ʺThe slope of the demand curve gives the elasticity of demand.ʺ Do you agree or disagree?
Why?
Q:
Which of the following type of shops is unlawful under the provisions of the Taft -Hartley Act?A) union shops B) closed shopsC) modified union shops D) open shops