Given that resources are scarce,
A. Opportunity costs are experienced whenever choices are made.
B. Poor countries must make choices, but rich countries with abundant resources do not have to make choices.
C. Some choices involve opportunity costs while other choices do not.
D. A "free lunch" is possible, but only for a limited number of people.
Answer: A
You might also like to view...
The figure illustrates the market for haircuts. Curve A is the ________ curve, and curve B is the ________ curve
A) marginal social cost; marginal social benefit B) total social cost; total social benefit C) opportunity cost; opportunity benefit D) marginal social benefit; marginal social cost
Summarize the characteristics of a perfectly competitive market
What will be an ideal response?
The Phillips curve will shift down with ________ or ________
A) a positive supply shock; an increase in expected inflation B) a positive supply shock; a decrease in expected inflation C) a negative supply shock; an increase in expected inflation D) a negative supply shock; a decrease in expected inflation
Policymakers are discussing various proposals regarding how to deal with natural monopolies. Senator Huff wants to regulate natural monopolies by equating price with average total cost. Huff contends that such a policy will ensure that monopolies make every effort to reduce costs. Senator Puff wants the government to own natural monopolies. Puff argues that government-owned monopolies usually do
a better job of holding down costs than privately owned monopolies. Which senator's argument is correct? a. Senator Huff b. Senator Puff c. both senators d. neither senator