The branch of economic theory that analyzes decisions about education and training is
a. welfare economics.
b. equilibrium analysis.
c. human capital theory.
d. consumption theory.
c
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Consumer’s surplus is the difference between the worth of a commodity to the consumer and the price the consumer pays for the commodity.
Answer the following statement true (T) or false (F)
Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the
A) services account. B) merchandise account. C) transfers account. D) capital account.
Opportunity cost is a measure of
a. foregone opportunities. b. value based on the alternative not chosen. c. value in terms of the cost of production. d. the difference between production cost and resource cost. e. both a and b.
In the short run, why would a firm in a perfectly competitive market shut down production if the prevailing market price falls below the lowest possible average variable cost?
A. At that point (economic) profit is zero. B. Below that point average revenue becomes less than marginal revenue. C. Below that point marginal revenue becomes insufficient to pay for avoidable average variable cost. D. Below that point other firms with similar cost will find it profitable to enter the market and take away demand from the existing firms.