According to the Principle of Increasing Opportunity Cost, in expanding the production of any good, we should start by utilizing the resources that:
A. have the highest opportunity cost.
B. we have the most of.
C. we have the least of.
D. have the lowest opportunity cost.
Answer: D
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Under fixed exchange rates, domestic asset transactions by the central bank
A) can be used to alter the level of foreign reserves but not to affect the state of employment and output. B) cannot be used to alter the level of foreign reserves but only to affect the state of employment and output. C) can be used to alter the level of foreign reserves and to affect the state of employment and output. D) can be used to alter the domestic money supply and the level of foreign reserves. E) can raise output to full-employment level.
The textbook cites an estimate of the "sacrifice ratio" in the United States of approximately
A) one-third. B) one-half. C) one. D) three. E) six.
According to Keynes, the adoption of an expansionary fiscal policy will cause: a. both equilibrium price level and equilibrium output to rise
b. equilibrium price level to rise and equilibrium output to fall. c. equilibrium price level to fall and equilibrium output to rise. d. both equilibrium price level and equilibrium output to fall. e. equilibrium price level to remain the same and equilibrium output to fall.
The Red Jacket Mountain View Inn in New Hampshire charges $150 per room in the winter ski season and $90 during the summer months. The number of rooms and operating costs are constant year round.Which of the following best explains the price difference?
What will be an ideal response?