People (and all resources):
a. tend to specialize in those activities in which their opportunity costs are minimized.
b. tend to specialize in those activities in which their opportunity costs are maximized.
c. never consider opportunity costs before specializing in a particular activity.
d. consider only direct costs while choosing to specialize in a particular activity.
e. do not act in their own self-interest but specialize in those activities which benefit others.
a
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Natural disasters like severe earthquakes are devastating to the economy as well as to the individuals harmed due to
A) supply shocks. B) demand shocks. C) demand-pull inflation. D) demand-pull deflation.
Marc puts prices on surfboards and skateboards at his sporting goods store. He is using money as a unit of account
a. True b. False Indicate whether the statement is true or false
The theory of efficiency wages asserts that
a. employers set wages based on each employee's productivity. b. employers strive to hold wages below equilibrium levels. c. employers may find it profitable to pay above-equilibrium wages. d. efficient workers actually earn lower wages than those earned by inefficient workers.
Rational expectations refer to
A. the use of all available information in forecasting economic variables. B. the use of aggregate supply to forecast unemployment. C. the use of opportunity costs to forecast inflation. D. disinflation.