Opportunity costs are
A) objective because they can always be put in monetary terms.
B) objective because specific things are given up when making a choice.
C) subjective because each person decides the value of the foregone alternative.
D) subjective because it is impossible to put a monetary value on foregone alternatives.
C) subjective because each person decides the value of the foregone alternative.
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Which of the following is true of labor force participation rates in the United States since the 1950s? a. The rates for both men and women have risen
b. The rate for women has fallen; the rate for men has risen. c. The rate for men has fallen; the rate for women has increased. d. The rates for both men and women have fallen. e. The rates for both men and women have remained fairly constant.
Rent controls tend to cause persistent imbalances in the market for housing because
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
?Suppose that government purchases of goods and services increase by $200 and at the same time lump-sum taxes increase by $200. Which of the following is true in this case?
a. The budget deficit will decrease as the economy expands. b. ?There will be no change in the budget deficit. c. ?Whether the budget deficit will increase or decrease will depend on the value of the marginal propensity to consume. d. ?The budget deficit will increase by $200. e. ?The budget deficit will increase by $400.
If production is occurring where marginal cost exceeds price, the purely competitive firm will:
A. maximize profit, but resources will be underallocated to the product. B. maximize profit, but resources will be overallocated to the product. C. fail to maximize profit and resources will be overallocated to the product. D. fail to maximize profit and resources will be underallocated to the product.