What would be the opportunity cost of a child using a coupon for a free ice cream cone?
A. The dollar cost of the cone he or she selected
B. The other types of ice cream he or she could have selected
C. Zero, because the good was not a durable good
D. Zero, because the good was free
Answer: B
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As of 2004, the U.S., Canada, and Western Europe account for 60 percent of the world's annual consumption of goods and services while having only about 11 percent of the world's population
Indicate whether the statement is true or false
Economic bads are items
A) for which the produced quantity is less than the amount desired at a positive price. B) for which the desired quantity is less than what nature provides at a zero price. C) that individuals desire but which receive social disapproval. D) that receive social approval but which governments dislike.
Using the concentration ratio to measure the degree of competition
A) may understate the degree of competition because it ignores imported goods. B) may overstate the degree of competition because it ignores imported goods. C) may overstate the degree of competition because inter-industry competition is ignored. D) may understate the degree of competition because market share changes annually.
Economists reason that the optimal decision is to continue any activity up to the point where the
A) marginal benefit is zero. B) marginal benefit is greater than the marginal cost. C) marginal cost is zero. D) marginal benefit equals the marginal cost.