Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2Jake can wash 6 cars or mow 3 lawns during the same time. His marginal cost of washing a car is:
a. mowing one-third lawn.
b. mowing half a lawn.
c. mowing one lawn.
d. mowing 2 lawns.
QUESTION 3The long-run average total cost curve is U-shaped because:
a. a firm initially experiences economies of scale and then diseconomies of scale.
b. the law of diminishing returns to a factor sets in beyond a certain level of output.
c. a firm initially experiences diseconomies of scale and then economies of scale.
d. division of labor keeps labor productivity constant irrespective of expansion or contraction in production.
e. the efficiency of capital increases over a period of time.
QUESTION 4Which of the following is most likely to be a price taker?
a. a respected heart surgeon
b. an ice cream shop owner located in Atlanta, Georgia
c. a beachside tourist resort
d. a Kansas wheat farmer
QUESTION 5A fisherman will catch and sell all the fishes in his pond in response to a substantial increase in the price of the fish even if he wishes to remain in the fishing business.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6The production of 1,000 shirts leaves an apparel manufacturer with a capacity to produce no more than 1,100 trousers during a month. This implies:
a. the production level is inefficient.
b. that if the production of trousers is reduced, that of shirts will also decline.
c. that a reallocation of resources may make previously unachievable outcomes achievable.
d. the production level is efficient.
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