The concept of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up
A) marginal cost
B) opportunity cost
C) normative economics
D) entrepreneurship
Answer: B
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Which theory best explains the wealth inequalities amongst nations?
A) weather B) government institutions C) natural selection D) factors outside of any human control E) levels of corruption
A student football team manager examined variables influencing the team's record and concluded that the best scores resulted when the "third-string" team played the most minutes. Therefore he recommended that the third-string team become the first team. Why is this conclusion probably
a. He failed to recognize that correlation is not causation. b. He did not review the entire game strategy carefully enough. c. He committed the fallacy of composition. d. He confused positive and normative analysis.
If marginal cost equals average total cost:
A. average total cost is minimized. B. average variable cost is falling. C. marginal cost is minimized. D. average variable cost is minimized.
If a market is subject to a positive externality,
A) the demand curve reflecting social benefit will be to the right of the demand curve representing private benefit. B) there is only one demand curve. C) the demand curve reflecting social benefit will be to the left of the demand curve representing private benefit. D) private benefit will exceed social benefit.