Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $1,000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of:
A. opportunity costs.
B. marginal benefits that exceed marginal costs.
C. imperfect information.
D. normative economics.
Answer: A
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A major problem with using a tradable emission allowances system to control pollution is
A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) that it does not eliminate pollution completely. D) it discourages firms from implementing cost-effective pollution control technology.
The result of a prisoner's dilemma is _____
a. individuals pursuing their own interests are acting for the group interest b. individuals pursuing the group interest are acting against their own interests c. individuals pursuing their own interests are acting against the group interest d. individuals pursuing the group interest are acting for their own interest
The Second Bank of the United States rose to prominence under the leadership of:
a. Alexander Hamilton. b. Andrew Jackson. c. Henry Clay. d. Nicholas Biddle.
Growth in human capital and physical capital often explains only half or less than half of the economic growth that occurs.
Select whether the statement is true or false. A. True B. False