Public goods are not free. If we need a fighter aircraft, we are obliged to give up something else that could have been provided with the resources used to make the aircraft. The opportunity cost of providing aircraft can be represented in the
a. paradox of thrift
b. aggregate expenditure curve
c. marginal propensity to consume
d. innovation cycle
e. production possibilities curve
E
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Diminishing returns occurs because
A) consumers don't buy enough of the products produced. B) one of the inputs in the production process is fixed. C) not enough people have jobs. D) two people have not satisfied their self-interests.
The impact of an increase in the gasoline tax on SUV sales is
A) a macroeconomics topic because it deals with taxes. B) a microeconomics topic because it deals with one industry. C) not an economic issue, but rather a political issue. D) insignificant.
Suppose a monopsonist currently employs 100 workers at a wage of $400 per week. If the firm wants to expand employment to 110 workers, and the 110th worker will only work for $450 per week, what is the approximate marginal factor cost of the 110th worker?
a. $450 per week. b. $5,500 per week. c. $950 per week. d. $9,500 per week. e. $49,500 per week.
When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?
A. the law of scarcity B. the law of supply C. the law of increasing additional costs D. the law of demand