The decision about how much money to hold is an application of the:
A. principle of increasing opportunity cost.
B. cost-benefit principle.
C. principle of comparative advantage.
D. scarcity principle.
Answer: B
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Orange juice and cranberry juice are substitute goods. An increase in the price of orange juice results in a(n)
a. increase in the demand for orange juice b. increase in the supply of cranberry juice c. increase in the quantity demanded of orange juice d. increase in the demand for cranberry juice e. decrease in the quantity demanded of cranberry juice
Explain how an economist is like an engineer. Give an example.
What will be an ideal response?
When per-unit costs increase as output increases, there are economies of scale in production.
Answer the following statement true (T) or false (F)
The net gain to society from changing output from QC to QE is
Consider the following graph of the market for chemical solvents, production of which damages a waterbody used for recreation.
a. DG b. DEH c. DGH d. DEHG