The key to the equality of output and income is:
A. transfer payments.
B. employee compensation.
C. profit.
D. business taxes.
Answer: C
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If oranges were found to cure cancer,
A) the equilibrium price of apples would likely fall. B) the equilibrium price of oranges would likely increase in the near term. C) the equilibrium quantity of oranges would likely increase. D) All of the above.
Does it make sense to consider the returns to scale of a production function in the short run?
A) Yes, this is an important short-run characteristic of production functions. B) Yes, returns to scale determine the diminishing marginal returns of the inputs. C) No, returns to scale is a property of the consumer's utility function. D) No, we cannot change all of the production inputs in the short run.
The direct costs in an economic evaluation include the all the following except
a. hospitalization b. medical devices c. transportation to and from the physician's office d. reduced productivity at work e. All of the above
Whenever a choice is made:
A) the value of all the other choices that could have been made is called opportunity cost. B) normative economics is encountered. C) the problem of "all other things unchanged" results. D) the opportunity cost of that choice is the highest-valued other choice that could have been made.