The best alternative use of a resource is referred to as its:
A) sunk cost.
B) market price.
C) marginal utility.
D) opportunity cost.
D
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Compared to a country with an MPC of 0.9, a country with an MPC of 0.5 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice B. three times C. four times D. five times
Suppose a new cost-saving device will forever generate $1,000 net savings per year to a firm. The device costs $10,000. Using the Internal Rate of Return approach, the firm will make the investment
A) definitely. B) definitely not. C) if the interest rate exceeds 10%. D) if the interest rate is less than 10%.
A society's institutions
A. include the laws and customs that influence the allocation of resources. B. have no effect on people's abilities to make decisions. C. are irrelevant when studying an economy. D. are not related to the control of society's resources.
The long-run equilibrium of a monopolistically competitive firm is characterized by
A. production at the minimum point of the firm's average variable cost curve. B. production at the minimum point of the firm's average total cost curve. C. a tangency of the average total cost curve with the firm's demand curve. D. price equal to marginal cost.