When the opportunity cost of producing more of a good is increasing, the marginal cost of producing more of the good is
A) decreasing.
B) constant.
C) increasing.
D) More information is needed to answer the question.
C
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Normative economic analysis involves
A) true statements of facts only. B) testable hypotheses by scientists. C) value judgments and opinions. D) purely descriptive statements.
An efficient distribution of goods requires that
A. everyone gets an equal share of each good. B. marginal cost equal marginal utility for the last unit produced. C. each person derives the same total utility from the good. D. since tastes differ, every person pays a different price in accordance with different marginal utilities.
Gross domestic product is officially measured by adding together the
A profit-maximizing company should extract a nonrenewable resource in the present up to the quantity where the:
A. selling price of the resource equals the extraction cost plus the user cost of the resource. B. selling price of the resource equals the total cost plus the user cost of the resource. C. selling price of the resource equals the extraction cost of the resource. D. extraction cost of the resource equals the user cost of the resource.