What type of cost is defined as at least what the resource could earn in its best alternative use?
a. implicit cost
b. explicit cost
c. opportunity cost
d. total cost
c
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In England during the Middle Ages each village had an area of pasture on which any family in the village was allowed to graze its cows and sheep without charge
Eventually, the grass in the pasture would be depleted and no family's cow or sheep would get enough to eat. The reason the grass was depleted was A) it did not get enough rainfall. B) the area of pasture was nonexcludable and the consumption of the grass was rival. C) self-interest motives led livestock owners to raise too many cows and sheep. D) due to a policy of neglect on the part of the English government.
Identify the correct statement. a. An increase in the price level in an economy will increase the real value of dollar-denominated assets. b. An increase in the price level in an economy will shift the aggregate expenditure line upward
c. An increase in the price level in an economy will decrease the equilibrium level of output demanded. d. An increase in the price level in an economy will cause an upward movement along the aggregate demand curve. e. An increase in the price level in an economy will shift the aggregate demand curve rightward.
Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work?
A. Pat should drive if saving half an hour is worth $0.50 or more. B. Pat should drive because it saves half an hour relative to taking the bus. C. Pat should take the bus if saving half an hour is worth $0.50 or more. D. Pat should take the bus because it costs $0.50 less than driving.
According to Keynesian economists, the key limitation on business production, and therefore on employment, is the
A. demand for output produced by business. B. rate of growth of the money supply. C. price of raw materials. D. level of the wage rate for skilled labor.