The statement that "there is no such thing as a free lunch" means:
A) there are no tradeoffs between economic goals.
B) any production requires the use of scarce resources, and thus the sacrifice of another alternative.
C) choices need not be made in rational behavior.
D) scarcity only exists in poor societies.
Answer: B) any production requires the use of scarce resources, and thus the sacrifice of another alternative.
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At the broadest level, the financial system moves the economy's scarce resources from
a. the rich to the poor. b. financial institutions to business firms and government. c. households to financial institutions. d. savers to borrowers.
Average total cost
A. increases as output increases. B. increases if marginal cost is increasing. C. decreases as output increases. D. increases if marginal cost is greater than average total cost. E. both c and d
If the long-run average total cost curve is rising as output increases, then the firm faces diseconomies of scale.
Answer the following statement true (T) or false (F)
Which of the following is NOT an example of a transfer payment?
A. Social Security benefits B. government salaries C. food stamps D. unemployment compensation