The value of the next best alternative defines ___________________.
Fill in the blank(s) with the appropriate word(s).
opportunity cost
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If a firm is earning zero economic profit, then:
A. the owner will not be able to pay himself or herself a salary. B. the firm's accounting profit is equal to the firm's implicit costs. C. the firm will shut down in the long run, but will continue to operate in the short run. D. the firm's revenues are sufficient to pay its explicit costs, but not its implicit costs.
Albert, Betty, Christine and David are all very good students. When they hold their study sessions, they often discuss very difficult concepts in great detail. Christine's roommate, Elizabeth, who takes completely different classes, still learns from the discussions of the others. This is the case of a(n) ____, which ____ a ____
a. public good; benefits; third party b. externality; imposes a cost on; free rider c. market failure; results from; third party d. free rider; benefits from; third party e. Externalities; benefits; third party
A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:
a. capitalism. b. communism. c. the invisible hand. d. a mixed economy.
A pair of running shoes costs $70 in the U.S. If the price of the same shoes is 4500 rupees in India and the exchange rate is 60 rupees per dollar, than the real exchange rate is
a. more than 1, so a profit could be made by buying these shoes in the U.S. and selling them in India. b. more than 1, so a profit could be made by buying these shoes in India and selling them in the U.S. c. less than 1, so a profit could be made by buying these shoes in the U.S. and selling them in India. d. less than 1, so a profit could be made by buying these shoes in India and selling them in the U.S.