"Bill Gates has made billions of dollars producing and marketing computer software. Many workers and consumers must have observation suffered in order for Gates to amass such enormous wealth." The person who made this
a. has failed to understand the principle of opportunity cost.
b. has failed to comprehend the fallacy of composition.
c. has failed to understand that specialization and voluntary exchange result in mutual economic gain.
d. has utilized the economic way of thinking by thinking the gains of producers are made primarily at the expense of consumers and workers.
a. has failed to understand the principle of opportunity cost.
You might also like to view...
Answer the following statements true (T) or false (F)
1) The meaning of product quality is dependent on the type of product. 2) Product quality is likely to be the same for a frozen pizza firm and a paper towel firm. 3) In general, consumers' valuation of additional units of quality increases as more units of quality are included in a product. 4) In general, the product quality marginal revenue curve is downward sloping and the product quality marginal cost curve is upward sloping. 5) The quality profit-maximization rule states managers should produce the level of quality that sets the marginal revenue from an additional unit of quality equal to the marginal cost of producing the additional unit of quality.
You have been given an opportunity to invest in a stock. Recent trends suggest that a one percent rise in the stock market leads to approximately a two and one-half percent rise in the price of this stock
The real risk-free rate currently stands at 6% and stocks on average have provided 12% returns. Using the capital asset pricing model, determine the appropriate discount rate for the stock in question.
Demand-pull inflation is worse than cost-push inflation because, in addition to higher prices, demand-pull inflation also reduces employment
a. True b. False Indicate whether the statement is true or false
A market in which there were many producers with no control over price could be characterized as _______________.
Fill in the blank(s) with the appropriate word(s).