When a state government chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of:
A. full employment.
B. marginal analysis.
C. full production.
D. opportunity cost.
Answer: D
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In the above figure, at which point on the demand curve is the price elasticity of demand equal to 1?
A) a B) b C) c D) It is impossible to say at which point the elasticity equals one.
A price floor is
a. a legal minimum on the price at which a good can be sold. b. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor. c. a source of inefficiency in a market. d. All of the above are correct.
What is the opportunity cost of 1 tractor in terms of automobiles for the U.S. and Japan, respectively?
A. 0.5 automobiles and 2 automobiles
B. 0.5 automobiles and 1 automobile
C. 2 automobiles and 1 automobile
D. 2 automobile and .25 automobiles
A country can consume outside its production possibilities curve by trading.
Answer the following statement true (T) or false (F)