Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).In analyzing the costs involved for student loans in the face of rising prices, this Application is addressing the economic concept of:
A. the marginal principle.
B. the principle of voluntary exchange.
C. the principle of diminishing returns.
D. the real-nominal principle.
Answer: D
You might also like to view...
In the linear breakeven model, the breakeven sales volume (in dollars) is equal to fixed costs divided by:
a. unit selling price less unit variable cost b. contribution margin per unit c. one minus the variable cost ratio d. a and b only e. a, b, and c
If nations begin to expand their specialization in production for the purpose of trade, a. consumer surplus will increase, but not total output
b. total world output will increase, and consumer surplus will increase as well. c. total world output will increase, but consumer surplus will not increase. d. neither total output nor consumer surplus will change.
What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?
a. Price would fall, and the effect on quantity would be ambiguous. b. Price would rise, and the effect on quantity would be ambiguous. c. Quantity would fall, and the effect on price would be ambiguous. d. Quantity would rise, and the effect on price would be ambiguous.
The short-run average total cost curve is generally assumed to be:
A. downward-sloping. B. U-shaped. C. upward-sloping. D. horizontal.