The time and invested funds involved in starting a lawn-cutting business address the economic concept of
A) the marginal principle. B) the principle of diminishing returns.
C) opportunity cost. D) the real-nominal principle.
C
You might also like to view...
The Bank of Techland is the largest bank in Techland. Which of the following is likely to be true if this bank fails?
A) Real interest rates in Techland will fall. B) Labor supply in Techland will fall. C) Real wages in Techland will remain unchanged. D) Techland's output will fall.
You would like to purchase two products. Product A gives you 8 utils, and Product B gives you 5 utils. Both products cost the same amount, and you can purchase only one of them. If you make the rational choice, what will be the net gain of utils from your purchase?
a. 3 b. 5 c. 8 d. 13
Which of the following statements best illustrates the concept of derived demand?
A. When the price of gasoline goes up, the demand for motor oil will decline. B. As income goes up, the demand for farm products will increase by a smaller relative amount. C. A decline in the price of margarine will reduce the demand for butter. D. A decline in the demand for shoes will cause the demand for leather to decline.
The amount of real GDP produced at any one time depends on
i. a fixed amount of capital. ii. a fixed level of technology. iii. decisions people make about leisure versus working. A) ii only B) ii and iii C) i and ii D) i only E) i, ii and iii