The costs of an economic activity borne by the producers are:
a. always less than social costs.
b. the full resource costs of an economic activity.
c. private costs.
d. all of these.
c
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In the economic way of thinking, the costs of a recession are predominantly
A) the costs of using money. B) the excessive costs of advertising in the face of persistent, falling demand. C) the costs of disappointed expectations and discoordination of plans. D) the costs associated with high nominal interest rates.
An individual's demand curve for a good can be derived by measuring the quantities selected as
A) the price of the good changes. B) the price of substitute goods changes. C) income changes. D) All of the above.
Jane wins $100,000 in a lottery and immediately uses her winnings to open up a donuts shop. Her direct cost is $50,000 . and she puts the remaining money in a savings account earning 10 percent annual interest. Alternatively, Jane could have placed all her lottery winnings in the 10 percent savings account. Jane's total cost of opening up a donuts shop is:
a. $60,000. b. $50,000. c. $160,000. d. $45,000. e. $55,000.
According to the Weber-Fechner law, the perceived size of a change in a stimulus will be large when the change in the stimulus:
A. is a rare event. B. occurs frequently. C. is large in proportion to the original stimulus. D. is small in proportion to the original stimulus.