The principle of opportunity cost is that
A) the economic cost of using a factor of production is the alternative use of that factor that is given up.
B) taking advantage of investment opportunities involves costs.
C) the cost of production varies depending on the opportunity for technological application.
D) in a market economy, taking advantage of profitable opportunities involves some money cost.
A
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Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent. Based on this information, we know that for Sergio, Blu-ray movies
A) are complements. B) are substitutes. C) are inferior goods. D) have an inelastic demand. E) are normal goods.
Most economists agree that some of the burden of the corporate income tax
A) is shared by the federal government. B) is reduced because the tax is used to attain a social objective. C) is reduced because the tax is progressive. D) is passed on to consumers in the form of higher prices.
According to the text, approximately how many countries are members of the WTO?
A) 100 B) 135 C) 150 D) 180
Which of the following is true?
A. The merger between Exxon and Mobil was subject to antitrust regulation by the U.S. Justice Department, but not by the European Commission. B. Antitrust today could best be summed up by the 90 percent rule. C. In the 1950s and 1960s the predominant types of mergers were of the conglomerate variety. D. When two firms in the same industry form one larger company it is called a vertical merger.