Refer to the accompanying figure. The opportunity cost of making an additional salad:
A. decreases as the number of salads increases.
B. increases as the number of salads increases.
C. decreases as the number of pizzas decreases.
D. remains constant regardless of how many salads are made.
Answer: B
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If the absolute value of the price elasticity of demand for a product is greater than 1, then
A) quantity demanded is not very sensitive to price changes. B) demand is elastic. C) demand is unit-elastic. D) demand is inelastic.
The efficient transfer price is
a. the upstream division's average cost b. the upstream division's marginal cost c. the downstream division's average cost d. the downstream division's marginal cost
Economists typically use ____ analysis, whereas clergy members typically use ____ analysis
a. positive; positive b. normative; normative c. positive; normative d. normative; positive
Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gamblers Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of: a. $2,000
b. $8,000. c. $10,000. d. $50,000.