D. most decisions do not involve sacrifices or trade-offs
A. there are always trade-offs between economic goals.
B. all production involves the use of scarce resources and thus the sacrifice of alternative
goods.
C. marginal analysis is used in economic reasoning.
D. choices need not be made if behavior is rational.
Answer: B
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Which of the following accurately depicts the situation of India's trade in services and what it might mean for the global economy?
A) It is not perceived as threatening to the industrialized nations so it is likely to grow without any impact. B) Because it is nothing new, other economies have had time to adjust. C) It creates only harm to other national economies. D) It may lead to protectionist sentiment and policies in other nations as comparative advantages shift.
If the price of gasoline rises at the Exxon gas station at a busy intersection, the Mobil station at the same intersection will experience
a. an outward shift of the demand curve it faces b. an inward shift of the demand curve it faces c. a rightward movement along the same demand curve it faces d. a leftward movement along the same demand curve it faces e. neither a shift in nor a movement along the demand curve it faces
Using average cost pricing, regulators of a natural monopoly
a. force the firm's economic profit to zero b. maximize the firm's economic profit c. achieve Pareto efficiency d. set price equal to cost where the LRATC curve crosses the demand curve e. set price equal to marginal cost where the MC curve crosses the demand curve
Combining the home money market and the uncovered interest parity relationship, we can see how changes in variables determine:
a. real GDP. b. the exchange rate. c. the price level. d. the quantity of money.