The user cost of extracting a nonrenewable resource is:
A. the sum of the dollar expenditures incurred to extract the resource.
B. the cost of not being able to extract it in the future if it is extracted and sold in the present.
C. the selling price of the resource to the companies using it to produce goods and services.
D. directly proportional to how much of the nonrenewable resource remains.
Answer: B
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The text takes the perspective that international politics today is defined by both
a. globalization and antiglobalization. b. continuity and change. c. poverty and prosperity. d. power and peace.
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $6 to $7:
A. total producer surplus would decrease. B. total producer surplus would increase. C. total producer surplus would remain unchanged. D. total producer surplus cannot be determined with the information given.
A fiscal policy action to close an expansionary gap is to:
A. decrease taxes. B. increase the marginal propensity to consume. C. increase transfer payments. D. decrease government purchases.
The law of increasing opportunity cost says that:
A) opportunity costs of production always tend to increase. B) increases in wages cause increases in the opportunity costs of production. C) as output increases for one good on its production possibilities curve, the opportunity cost of additional units of the other good will be greater and greater. D) along a production possibilities curve, as output increases in the production of one good, the opportunity costs of additional units of the other good will be less and less.