Individuals and businesses must choose between the different uses for thier available resources. This is called ___ resources and is due to the concept of____.
A. exchanging; opportunity cost
B. production; scarcity
C. allocating; scarcity
D. scarcity; production
Answer: C. allocating; scarcity
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Which of the following factors will increase labor productivity in the United States?
a. An aging labor force b. A decline in the number of women entering the workforce c. An increase in unskilled workers d. An increase in the average level of education e. A decrease in the number of educated immigrants
Rational choice requires that opportunity cost be
a. ignored in making a decision. b. considered for individual choices, but not for societal choices. c. computed, but not actually used in making a decision. d. considered as part of making a decision. e. used as the sole decision criterion.
A stove is produced by a firm in 2014, added to the firm's inventory in 2014, and sold to a household in 2015 . It follows that
a. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and subtracted from the investment category of 2015 GDP. b. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP. c. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP. d. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and added to the investment category of 2015 GDP.
Evaluate the following statement in the context of business-stealing and product-variety externalities: "We have too many student apartments in this town already. Statistics show that vacancy rates average 15 percent during any given semester."