In the above figure, as more ukuleles are produced, the opportunity cost in terms of guitars is
A) decreasing.
B) increasing.
C) constant.
D) zero.
C
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Some researchers argue that the overall standard of living increased during the 1920s. In general, holding constant all other factors that might impact it, economists are careful about connecting an increase in the standard of living to
(a) increases in the amount of labor used in production processes. (b) new inventions being made in research laboratories. (c) increases in the output of goods and services per worker. (d) the discovery of new sources of gold and silver.
The market allocates goods to individuals according to the individuals’
A. desire for the good. B. ability to pay for the good. C. desire and ability to pay for the good. D. political influence.
When economies of scale are large relative to the quantity demanded in the market, it is called a(n):
a. natural monopoly. b. legal monopoly. c. artificial monopoly. d. inevitable monopoly.
Market failure is the inability of
a. buyers to interact harmoniously with sellers in the market. b. a market to establish an equilibrium price. c. buyers to place a value on the good or service. d. some unregulated markets to allocate resources efficiently.