Rational production decisions require an understanding of
a. trade-offs.
b. opportunity costs.
c. scarcity of resources.
d. All of the above are correct.
d
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Equilibrium price is
A. $5.
B. $4.
C. $3.
D. $2.
The low point of the Great Depression was reached in the year
A. 1929. B. 1931. C. 1933. D. 1935.
The Heckscher-Ohlin theorem explains why the U.S. both imports and exports cars.
Answer the following statement true (T) or false (F)
An externality is present in a free market whenever:
A. an activity generates costs or benefits that are not reflected in market prices. B. a monopolist spends funds to keep potential competitors out of the market. C. a tax is imposed on the supplier of a good. D. firms hire employees from outside the firm to fill positions normally filled by promotion from within the firm.