The relevant cost in economic decision-making is the opportunity cost of the resources rather than the outlay of funds required to obtain the resources
a. true b. false
a
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In a simple closed economy, the income approach to calculating GDP is:
A. wages + interest + rental income + profits. B. wages + interest + government income + profits C. wages + government earned interest + rental income + profits D. wages + interest + rental income profits.
If a good is free, people will continue to increase consumption until total utility is equal to zero
Indicate whether the statement is true or false
In the short run if the tax rate on asset income rises, then in the market clearing model:
a. household current consumption will rise compared to future consumption. b. the after tax real interest rate rises. c. current investment will rise. d. all of the above.
When a decrease of a firm's scale of production leads to lower average costs per unit produced, there is an increasing return to scale.
Answer the following statement true (T) or false (F)