If you own a condo and you decide to lease it to your cousin,
A. there is no opportunity cost of leasing the condo because you collect rent from your cousin.
B. there is no opportunity cost of leasing the condo because you own it.
C. there is an opportunity cost of leasing the condo because you could have chosen to live in it.
D. the only cost relevant to this decision is the price you paid for the condo.
Answer: C
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Which of the following statements is true about a command economy?
a. Shortages occur because of complexities in the planning process. b. Planners determine what, how many, and for whom goods and services are to be produced. c. Planners often allocate goods and services through a rationing system. d. The quality of produced goods and services tends to be inferior. e. All of these are true.
The United States need never pay off the national debt; it can simply refinance the debt when it comes due. The flaw in thinking that the government must pay it off is based on the fallacy of
A. benefit-cost ratio. B. post hoc, ergo propter hoc. C. composition. D. a priori expectations.
Which of the following is NOT a characteristic of a monopolistically competitive market?
A. There is only one firm selling a product. B. There are many firms selling products that are similar but not identical. C. There are many firms that have some control over price. D. There are no artificial barriers to entry.
In a partnership, debts accumulated by one partner
A. are the responsibility of that partner only. B. are the responsibility of the other partners only up to the amount each partner initially invested in the partnership. C. are the responsibility of the other partners as well. D. are the responsibility of all the employees of the partnership, regardless of whether those employees are partners.