An external cost is built into the market price of a good and thus paid by the consumers
a. true
b. false
Answer: b. false
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What is the economies of scope character for a firm that has a straight-line product transformation curve?
A) Economies of scope (SC > 0) B) Diseconomies of scope (SC < 0) C) SC = 0 D) SC = 1
Economics is
a. exclusively the study of the markets for stocks and bonds b. the study of choice under conditions of scarcity c. exclusively the study of business firms d. fundamentally the same as sociology e. applicable only when scarcity is not a problem
Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?
a. a company in Canada wants to buy oranges from the U.S b. a Japanese banks want to buy bonds from the U.S. government c. a U.S. citizen wants to buy stock a German company is selling d. None of the above is correct.
A society with a large unskilled labor force will most likely practice
a. machine-intensive farming methods b. labor-intensive farming methods c. machine and labor-intensive farming methods d. importing food to avoid famine