In the context of the production possibilities curve, opportunity cost is measured in:
a. dollars paid for the goods.
b. the quantity of other goods given up.
c. the value of the resources used.
d. changing technology.
e. units of satisfaction.
b
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A general medium of exchange tends to
A) reduce transaction costs. B) make bartering more effective. C) reduce the incentive to specialize and pursue one's comparative advantage. D) accomplish all of the above. E) accomplish none of the above.
In the case of a perfectly price-discriminating monopoly, there is no
A) transfer of consumer surplus to the producer. B) deadweight loss. C) short-run economic profit. D) long-run economic profit.
If the government finances an increase in government purchases with an increase in taxes, which of the following would you not expect to see?
A) an increase in the exchange rate B) a decrease in net exports C) a decrease in the interest rate D) an increase in aggregate demand
The price index that measures the prices of goods and services purchased by firms is called the:
A. producer price index. B. purchasing power index. C. consumer price index. D. retail sales index.