Because of scarcity, every economic decision involves
a. a trade-off.
b. a trade-in.
c. an increasing cost.
d. a money payment.
e. a tax or tariff.
a. a trade-off.
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The substitution effect will never induce a consumer to buy more of a good when its price increases
a. True b. False
A firm is generating detrimental externalities when
a. MSC is less than MPC. b. MSC is the same as MPC. c. MSC is greater than MPC. d. MPC includes some incidental costs.
In national income accounting, the consumption category of expenditures includes purchases of:
A. both new and used consumer goods. B. automobiles for personal use but not houses. C. consumer durable and nondurable goods but not services. D. consumer nondurable goods and services but not consumer durable goods.
Moving from one point to another on a production possibilities frontier implies
A) increasing the production of both goods. B) changing the amount of factors of production that are employed. C) decreasing the production of both goods. D) increasing the production of one good and decreasing the production of another. E) holding the production levels of both goods constant.