Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates
A. distorted priorities.
B. increasing opportunity costs.
C. opportunity costs.
D. productive efficiency.
Answer: C
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In a world with saving, making an income tax a consumption tax would require the tax base to be _____
a. income b. income minus savings c. consumption plus investment d. comprehensive
Employers choose to offer efficiency wages because:
A. they give employees an incentive to work hard to keep their jobs. B. it will reduce turnover, saving the employer time and money to hire and train new workers. C. it has proven to make workers more productive. D. All of these are true.
Perfect competition and monopoly stand at ______ of the spectrum of competition.
A. the low end B. the mid-way point C. the high end D. opposite ends
Explain how monopolistic ally competitive producers try to improve on the condition of just breaking even in the long run. Is this improvement a benefit for consumers?
What will be an ideal response?