Opportunity cost cannot be measured in money terms, only in conceptual terms
a. True
b. False
Indicate whether the statement is true or false
False
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Common ownership of resources:
a. is a system by which the government allocates the rights to harvest renewable resources. b. may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield. c. is an environmentally effective method of internalizing an externality problem in renewable resource conservation. d. efficiently controls the harvest of renewable resources. e. usually helps in preventing market failures.
When the consumer has found the best affordable bundle of goods:
A. the area above the indifference curve that runs through the consumer's best bundle does not overlap with the area below the budget line. B. the area above the indifference curve that runs through the consumer's best bundle does not overlap with the area above the budget line. C. the area above the indifference curve that runs through the consumer's best bundle should overlap with the area below the budget line. D. the area above the indifference curve that runs through any bundle other than the consumer's best bundle does not overlap with the area below the budget line.
How are Treasury bond prices affected when the interest rate falls?
A. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must decrease. B. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must increase. C. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must decrease. D. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must increase.
Assume a perfectly competitive industry is in long-run equilibrium at a price of $20. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price
A. of $20. B. greater than $20. C. less than $20. D. either greater than or less than $20 depending on the magnitude of the decrease in demand.