1. economists believe that a. people who choose to promote the interests of othe
ID: 1198153 • Letter: 1
Question
1. economists believe that
a. people who choose to promote the interests of others cannot be acting rationally in their own self-interest.
b. people show concern only for those whom they know personally.
c. charitable donations would disappear if tax deductions for charitable giving were eliminated.
d. the notion of self-interest rules out concern for others.
e. concern for the welfare of others is consistent with the concept of self-interest.
2. A decrease in demand will cause a (n)
a. increase in supply
b. decrease in supply
c. increase in quantity
d. increase in equilibrium price
e. decrease in equilibrium price
3. With the total cost and total revenue curves, we measure economic profit by the ______ between the two curves. With the per-unir curves, we measure economic profit by a (n) ______.
a. vertical distance; horizontal distance
b. vertical distance;area
c. area; area
d. area; vertical distance
e. horizontal distance; area
Explanation / Answer
2. A decrease in demand will cause a decrease in equilibrium price. A shift in demand curve to the left will shift the intersection of demand and supply curve downward showing that the equilibrium price at the reduced quantity will go down.
3. With the total cost and total revenue curves, we measure economic profit by the area between the two curves. With the per-unit curves, we measure economic profit by a vertical distance. between the Price of the commodity at equilibrium quantity and the corresponding ATC.
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