If a country has a comparative advantage in oil, then this means that the opportunity cost of producing oil is:
a. high.
b. low.
c. zero.
d. infinite.
e. equal to all other goods.
b
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A positive externality or spillover benefit (additional social benefit) occurs when
A. the benefits associated with a product exceed those that accrue for consumers. B. firms earn positive economic profits. C. a firm does not bear all of the costs of producing a good or service. D. product differentiation increases the variety of products available to consumers.
According to the crowding-out view, budget deficits will:
a. reduce interest rates. b. increase interest rates and retard private investment. c. reduce the investments of foreigners in the United States. d. increase the capital stock available to future generations.
The relative concept of poverty is based on how far a family falls behind the
a. average family income. b. top 20 percent of families. c. minimum in wages. d. any of the above.
Money serves which of the following functions?
A. A medium of exchange. B. A standard of value. C. A store of value. D. All of the choices are true of money's function.