Trade-offs can always be considered in terms of opportunity costs.
Answer the following statement true (T) or false (F)
True
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For a perfectly competitive firm, the shutdown point is the
A) amount of output at which price equals minimum average variable cost. B) amount of output at which price equals minimum average total cost. C) price at which economic profit is zero. D) price at which total opportunity cost is zero.
A monopsony owner believes that hiring an additional worker would increase the company's revenue by $150 per day. We can conclude that the monopsony pays its workers:
a. more than $150 per day. b. exactly $150 per day. c. less than $150 per day. d. exactly $75 per day.
When Congressional decision makers chose not to raise taxes to fight the war on terrorism, they
A. eliminated the opportunity cost of war. B. exploited the fact that borrowed money has no opportunity cost. C. borrowed the money, moving the opportunity cost into higher interest rates and/or crowding out. D. printed all of the money required to fight the war on terrorism.
In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts up and to the right, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, it will
A. not shift the LR curve. B. shift the LR curve down. C. shift the IS curve up and to the right. D. shift the LR curve up.