The additional amount a person is willing to pay to obtain a good or resource now rather than later is called the
a. interest rate.
b. nominal price of future goods.
c. inflationary premium.
d. risk premium.
A
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Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's minimum efficient scale is
A) 2,650 copies per day. B) 6,000 copies per day. C) 4,000 copies per day. D) More information is needed to determine the minimum efficient scale.
In a two good, two-country world, a country has a comparative advantage in any good for which it has a:
a. lower absolute cost than the other country. b. lower opportunity cost than the other country. c. higher absolute cost than the other country. d. higher opportunity cost than the other country.
An economy using money is more efficient that a barter economy because the use of money reduces the time spent searching for trading partners with a coincidence of wants and therefore more time can be spent producing goods and services
a. True b. False Indicate whether the statement is true or false
Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones
A. both equilibrium price and quantity will increase. B. both equilibrium price and quantity will fall. C. equilibrium price will fall but quantity will increase. D. equilibrium price will increase and quantity will decrease.