The opportunity cost of any action is
a. irrelevant to economic theory
b. limited to the out-of-pocket cost incurred
c. the sunk cost plus the markup on materials and labor
d. what we gain in the process of consumption
e. what is sacrificed to pursue that action
E
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In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the consumer surplus?
A) area GHIL B) area HIJ C) area HJKG D) area NFL
Barriers to trade
A) include government policies such as tariffs and quotas. B) have been falling with technological improvements in transportation and communication. C) have risen since World War II as many countries have imposed higher tariffs. D) Two of the above are true.
GDP is used in the __________ to __________
a. long run; alert us to recessions b. short run; alert us to recessions c. long run; gauge the success of monetary policy d. short run; measure changes in the standard of living e. short run; check for inflation
Which of the following has the greatest amount of foreign-exchange reserves in the world?
A) China B) Ireland C) Russia D) Taiwan