The things that must be forgone to acquire a good are called
a. implicit costs.
b. opportunity costs.
c. explicit costs.
d. accounting costs.
b
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Assume that two investment opportunities have identical expected values of $100,000. Investment A has a variance of 25,000, while investment B's variance is 10,000
We would expect most investors (who dislike risk) to prefer investment opportunity A) A because it has less risk. B) A because it provides higher potential earnings. C) B because it has less risk. D) B because of its higher potential earnings.
Who ultimately benefits from price supports in agriculture?
A) consumers B) grocery store owners C) farmers D) exporters
Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?
a. the effect of taxes on the prices of airline tickets, and the profitability of automobile-manufacturing firms b. the price of beef, and wage differences between genders c. how consumers maximize utility, and how prices are established in markets for agricultural products d. the percentage of the labor force that is out of work, and differences in average income from country to country
Refer to Figure 2-10. In the circular flow diagram, market K represents
A) product markets. B) firms. C) households. D) factor markets.