According to the principle of increasing costs, as the production of one good expands, the opportunity cost of producing another unit of the good tends to increase.
Answer the following statement true (T) or false (F)
True
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When benefit-cost analysis is used to facilitate U.S. public policy decisions,
a. the discount rate is selectedby the individual policy maker b. no adjustment can be made for inflation, since the inflation rate is not known in advance c. the discount rate used should reflect the social opportunity cost of funds d. only incremental costs are adjusted for time differences
High barriers to entry are generally found in: a. monopolistically competitive markets. b. oligopolistic markets
c. monopolistic markets. d. both (b) and (c).
The new classical view of budget deficits assumes that
a. people view government bonds as an addition to their wealth. b. individuals do not anticipate the tax liability implied by deficit spending. c. increased government borrowing will raise the interest rate and retard private borrowing and capital formation. d. if future taxes (debt) are substituted for current taxes, people will save the reduction in current taxes in order to pay the higher future taxes.
A jurisdictional dispute means that
A) members of a union disagree on the outcome of union elections. B) a higher court reversed the decision of a lower court in a case brought by a union. C) a union leadership and membership cannot agree on an issue. D) two unions disagree on which should represent workers in a particular industry.