Which of the following statements is correct?
a. If the buyer of a good gains, the seller must lose an equal amount.
b. The value of goods is objective; it is equal to the cost of supplying the good.
c. Opportunity costs will always be incurred when scarce resources are used to produce a good.
d. Changes in incentives generally have no effect on human behavior.
C
You might also like to view...
Using a figure show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run
What will be an ideal response?
The individual countries of the Eurozone are on which side of the "policy trilemma"?
A) free capital mobility and independent monetary policy B) free capital mobility and fixed exchange rate C) fixed exchange rate and independent monetary policy D) fixed exchange rate and capital controls
The most fundamental concept in economics is that
What will be an ideal response?
If you sell your DVD player on eBay, you will be better informed about the quality of the product than any potential buyer. This is called
A) adverse selection. B) asymmetric information. C) moral hazard. D) opportunistic behavior.