A good is more likely to be produced at home than in the market if:
athe average cost of household production is high
bthe marginal benefit from the good is lower than the marginal cost of production
cthe marginal benefit from the good is higher than the marginal cost of production
dit requires few specialized resourcesethe opportunity cost of household production is high
Criola Motors Company, a major player in the automotive industry, set up new manufacturing units to expand its company’s operations The company has been incurring heavy losses due to higher costs since the expansion This is an example of _____
adiminishing marginal returns
beconomies of scale
cdiseconomies of scaled
diminishing marginal cost
ediminishing marginal product
Suppose Lorna buys more sweaters even if the price of sweaters rises Other things constant, she is acting contrary to the law of _____?
a?equi-marginal utility
b?diminishing costs
c?one priced?demand
e?increasing costs
A firm earns normal profit:
awhen economic profit equals explicit costs
bwhen accounting profit equals implicit costs
cwhen accounting profit equals explicit costs
dwhen economic profit equals implicit costs
eexplicit costs equal implicit costs
Which of the following is an example of an in-kind transfer?
aWelfare payments?
b?Unemployment compensation payments
c?Charitable contributions
d?Most Social Security benefits
e?Food stamps
The economic question of what will be produced is:
aprimarily answered by markets in a command economy
bfaced by all economies regardless of their wealth
ccannot be illustrated by the economic concept of the production possibilities frontier
ddoes not have to be answered by economies possessing great wealth
?eprimarily answered by the government in a system of pure capitalism