Marginal resource cost is the
a. cost of hiring another unit of a resource
b. additional revenue generated by hiring one more unit of a resource
c. additional output generated by hiring one more unit of a resource
d. total cost of hiring a resource
e. average cost of hiring a resource
A
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The credit demand curve is the schedule that reports the relationship between the quantity of credit demanded and ________ in an economy, assuming all else equal
A) the average tax rate B) the annual inflation rate C) the nominal rate of interest D) the real rate of interest
An international division of labor will have no effect on total world output because resources are limited
Indicate whether the statement is true or false
Nick has $300 a month to spend on detailing his sports car or buying bottles of good wine. It costs $100 to have his car detailed and $50 for a bottle of wine. He currently buys four bottles of wine and has his car detailed once a month. If the price of detailing his car decreased to $75, Nick's budget constraint:
A. would shift straight outward, because he is relatively wealthier. B. would rotate and change slope because relative prices have changed. C. would shift straight inward because he is relatively wealthier. D. One cannot determine what would happen without knowing Nick's marginal utility of each good.
The theory of comparative advantage suggests that nations should produce a good if they
a. have the lowest opportunity cost. b. have the lowest wages. c. have the most resources. d. can produce more of the good than any other nation.