Opportunity costs arise because of resource scarcity
a. True
b. False
A
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An exclusive right to sell a new and useful product, process, substance, or design for a fixed period of time is called a
A) patent. B) barrier to entry. C) monopoly. D) research disincentive.
A country has a population of 10 million people with 1 million unemployed, which is an unemployment rate of 20%. The number of people in the labour force is therefore:
(a) 10 million; (b) 5 million; (c) 1 million; (d) 2 million.
Suppose that goods A and B are close substitutes and the price of good B falls. We would then expect an:
a. Increase in the quantity demanded of good B and a decrease in the demand for good A b. Increase in the demand for good A and a decrease in the quantity demanded for good B c. Increase in the demand for good A and the quantity demanded for good B d. Increase in the demand for goods A and B
Changes in the equilibrium interest rate will:
A. affect both the size of the domestic output and the allocation of capital goods among industries. B. affect the size of the domestic output, but not the allocation of capital goods among industries. C. affect the allocation of capital goods among industries, but not the size of the domestic output. D. have no perceptible effect on either the size of the domestic output or the allocation of capital goods among industries.