Which of the following statements is not compatible with the opportunity cost theory?
A) Demand plays a role in the determination of costs.
B) Labor costs depend upon the demand for labor.
C) Relative prices reflect the relative amount of human labor required to produce goods.
D) Supply as well as demand depends upon subjective preferences.
C
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Which of the following represents the correct formula for present value?
A) Present value = Payment T periods from now × (1 + interest rate)T B) Present value = Payment T periods from now - (1 + interest rate)T C) Present value = Payment T periods from now + (1 + interest rate)T D) Present value = Payment T periods from now / (1 + interest rate)T
If all opportunities for Pareto improvements have been exhausted,
a. economic efficiency has been achieved b. the allocation of goods and services is fair c. perfect competition has been achieved d. the economy is in disequilibrium e. economic inefficiency has been achieved
Which of the following statements is correct?
A) The Social Security program funnels transfers from retired individuals to the youngest children of low-income families. B) Social Security is an entitlement which is available to everyone, including those who have not contributed to the fund during their active work years. C) Social Security benefits are received by people who had contributed to the fund during their active work years. D) As a public transfer payment, Social Security benefit is available only to the poor.
Which of the following is true?
A. In Bertrand oligopoly each firm believes that its rivals will hold their output constant if it changes its output. B. In oligopoly a change in marginal cost never has an effect on output or price. C. In Cournot oligopoly firms produce an identical product at a constant marginal cost and engage in price competition. D. None of the answers is correct.