If people follow the rule of rational choice they will choose options that they think will:
a. create more average benefits than average costs
b. create more additional costs than additional benefits
c. create equivalent additional benefits and additional costs
d. create more additional benefits than additional costs
d
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Policy lags tend to make monetary policy ________.
A. more effective in expansions than contractions B. less effective than fiscal policy C. pro-cyclical D. more effective than initially thought
Refer to the scenario above. The opportunity cost of producing one pound of apples in Beta is:
A) 1/2 pounds of oranges. B) 15 pounds of oranges. C) 10 pounds of oranges. D) 2 pounds of oranges.
Club goods differ from pure private goods in that
A) club goods are nonexcludable while pure private goods are excludable. B) club goods are excludable while pure private goods are nonexcludable. C) club goods are nonrival while pure private goods are rival. D) club goods are nonexcludable while pure private goods are excludable.
In the long run, perfectly competitive firms earn just enough revenue to
A) pay all fixed costs. B) pay all accounting costs. C) pay all opportunity costs. D) attract entry.