The cost incurred from the production of an additional unit of a product
A) is a marginal cost to the firm.
B) is called a loss.
C) is called opportunity cost.
D) must be zero for a firm to be efficient.
Answer: A
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Dividing (P x Q) by V2 times gives:
a. A stock value b. A flow value. c. Neither a stock nor a flow value. d. Real GDP
In a world of scarcity, ____________.
a. consumers or producers will always behave in a manner in which marginal benefits (MB) is less than marginal costs (MC) b. consumers or producers will always behave in a manner in which marginal benefits (MB) is less than average costs (AC) c. the decision to obtain the marginal benefit associated with some specific option includes the total cost of forgoing something else d. the decision to obtain the marginal benefit (MB) of a specific option always includes the marginal cost (MC) of forgoing something else
The World Bank:
A. provides military assistance to those nations interested in improving national defense. B. makes and guarantees loans for basic development projects such as the construction of dams, roads, and schools. C. provides gold for DVCs that want to go on the gold standard. D. provides short-term loans to DVCs that are incurring balance of payments deficits.
If autonomous consumption decreases, the size of the multiplier would
A. increase. B. remain constant. C. decrease. D. either increase or decrease depending on the size of the change in autonomous consumption.