Explain briefly what will likely happen to society if it chooses to produce more capital goods and fewer consumption goods
What will be an ideal response?
Because capital goods enable society to produce larger quantities of consumption goods, giving up some consumption goods in exchange for more capital goods today will result in larger production of consumption goods in the future.
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The opportunity cost of an action is
A) everything that makes an action possible. B) the monetary payments that make an action possible. C) the sum of the human efforts that contribute to an action. D) the value of the next-best alternative that must be sacrificed to take the action.
Green Duck Airways is considering adding a new flight between Portland and Seattle. Revenue from the flight is expected to be $8,000. The total cost of the flight is $9,500, and the variable cost is $4,000. Should the airline add this flight?
A. No, because the revenue of $8,000 is less than the cost of $9,500. B. No, the addition to profit is too small to devote the aircraft to the flight. C. Yes, profit increases by $4,000. D. Yes, profit increases by $2,500.
Economies of scale were initially seen between
A) 1800 and 1840. B) 1970 and 1980. C) 1840 and 1910. D) none of these choices.
Which of the following is true of long-run costs and short-run costs? a. In the long run, changes in variable costs and fixed costs will cancel each other out. b. In the long run, no costs are truly fixed costs. c. In the short run, no costs are truly fixed costs
d. In the short run, marginal costs are fixed costs.