After years of hard work in the field of macroeconomics, you win the Nobel Prize in economics (currently about $1.5 million). What is the most likely effect of this prize on your consumption function?
a. It will shift downward temporarily.
b. It will shift upward temporarily.
c. It will shift downward permanently.
d. It will shift upward permanently.
e. none of the above
d
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For certain public projects such as building a dam on a river or a bridge to an island, what procedure is a government likely to use to determine what quantity of a public good should be supplied?
A) It hires economists to estimate the market demand for the product. B) It evaluates the costs and benefits of producing the good. C) It takes a vote in Congress. D) It conducts public surveys to determine if consumers want the product.
Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $10. What does total revenue equal when quantity equals 4?
A) $4 B) $6 C) $36 D) $40