The amount of payment necessary to attract a given productive resource away from its best alternative use is the
a. resource cost.
b. opportunity cost.
c. overhead cost.
d. variable cost.
b. opportunity cost.
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Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. Refer to Situation 4-1. Because price controls were in
effect at the time the embargo occurred, an economist would have most likely predicted that A) the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would increase sharply. B) the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would decline sharply. C) long waiting lines and black markets would appear. D) a surplus of gasoline would result.
A firm that is the only seller of a good with no close substitutes is a(n)
A. perfect competitor. B. monopolist. C. monopolistic competitor. D. oligopolist.
The type of unemployment that is most likely to arise as a result of technological changes is
A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. seasonal unemployment.
The relationship between interest rates and stock prices is referred to as:
A. the wealth-creating mechanism of monetary policy. B. the asset-price channel of monetary policy. C. the investment-spending mechanism of monetary policy. D. the interest-rate mechanism of monetary policy.