Money costs and opportunity costs are concepts that are
a. not related in any meaningful way.
b. used by tax accountants.
c. related through relative prices of goods and services.
d. used by economists to learn the most efficient level of output.
c
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Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why?
A) shut down because the firm incurs an economic loss B) stay in business because the firm is making an economic profit C) stay in business because the firm's economic loss is less than fixed costs D) stay in business because it is making zero economic profit
Calculate the price elasticity of demand for gasoline implied by what most studies have found
What will be an ideal response?
If Slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its imports, this would
A) improve its terms of trade. B) have no effect on its terms of trade. C) harm its terms of trade. D) decrease its marginal propensity to consume. E) increase its exports.
If good salespeople are extremely risk averse, then a choice between a fixed-fee contract and a contingent contract
A) avoids a moral hazard. B) will result in all job candidates choosing the contingent contract. C) will result in an efficient contract. D) may not be a good screening device.