Complete the following logical statement: "Because of, individuals and societies must make choices, and they must therefore consider the opportunity cost of every action."
Ans: Scarcity
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Bill's Lawn service starts the year with 20 lawn mowers. During the year, 3 mowers break and are not worth fixing. Bill also expands his business and buys 10 more mowers. Bill's net investment is ________ mowers
A) 13 B) 7 C) 10 D) 20 E) 27
Which line in the figure shows a more elastic supply for euros?
A) Line S B) Line S' C) There elasticities are the same. D) This cannot be determined from the graph.
Real business cycle proponents argue that
a. recessions are caused by movements of output away from the natural rate of output. b. prices and wages are sticky. c. macroeconomics should be based on the same assumptions as microeconomics. d. monetary policy is important in determining recessions. e. none of the above.
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. If buyers are risk-neutral and know the that 80 percent of the houses for sale have a solid foundation while 20 percent have a cracked foundation, then the owners of houses with a solid foundation will find that:
A. potential buyers are offering $180,000. B. potential buyers are offering $200,000. C. it is not worthwhile to sell their houses. D. potential buyers are offering more than $200,000.