When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?
A. the law of scarcity
B. the law of supply
C. the law of increasing additional costs
D. the law of demand
Answer: C
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According to this Application, tariffs in the United States are very high on textiles, apparel items and footwear. These tariffs disproportionately impact lower-income households because
A) these products represent a higher fraction of consumption of lower-income households than higher-income households. B) the tariffs are only applicable to lower-income households. C) higher-income households tend to purchase products produced in the United States, which are not subject to tariffs. D) lower-income households tend to purchase more of these items than do higher-income households.
A two-period project has the following probabilities and cash flows:
Probability Cash flow Period 1: .25 500 .50 600 .25 700 Period 2: .30 300 .50 500 .20 700 The discount rate is 7%, and the initial investment is $1,000. How much is the expected NPV of this project?
Which of the following is the best example of a public good?
a. Cars. b. Education. c. Radios. d. Air traffic control.
In monopolistic competition, a firm
A. Has a standardized product that all firms produce. B. Has no market power. C. Captures significant economies of scale. D. Has a downward-sloping demand curve.