Which of the following should not be included when calculating accounting profit?
A. The cost of utilities.
B. The cost of taxes.
C. The return on the next best alternative investment opportunity.
D. The cost of rent.
Answer: C
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Along the aggregate production function, as the quantity of labor rises, real GDP
A) rises. B) falls. C) stays the same. D) may fall, rise, or stay the same.
English mercantilism recognized the law of comparative advantage, thus permitting individuals to specialize in producing those goods and services which they could produce at relatively low opportunity costs and trading those items for those which
they could not. Indicate whether the statement is true or false
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country's production possibilities frontiers, we can infer that Country A will specialize in:
A. trucks, and be willing to accept no less than 5 cars for each truck.
B. cars, and be willing to give no more than 5 cars for each truck.
C. trucks, and be willing to accept no more than 5 cars for each truck.
D. cars, and be willing to give no less than 5 cars for each truck.
The graphical device that illustrates the concept of scarce resources being efficiently utilized in the economy is a(n)
A. budget line. B. indifference curve. C. production possibilities frontier. D. marginal cost curve.