According to the Principle of Increasing Opportunity Cost, in expanding the production of any good, we should start by utilizing the resources that:
A. have the highest opportunity cost.
B. have the lowest opportunity cost.
C. we have the most of.
D. we have the least of.
Answer: B
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An autonomous appreciation of the U.S. dollar makes American goods ________ expensive relative to foreign goods which ________ net exports in the U.S
A) less; decreases B) less; increases C) more; decreases D) more; increases
When economists say an individual has made a rational choice, they mean the individual has
a. made the choice by weighing their own subjective costs and benefits. b. made a "good" decision, one that reasonable outside observers would have also made. c. neglected to consider the unintended consequences arising from their decision. d. ignored their own personal interests and made the choice that is best for society.
Explain the concept of diminishing marginal utility, and describe the role that it plays in the utilitarian argument for the redistribution of income
Which of the following statements is true?
A) Monetarists believe that the government should be very involved in managing and directing the economy. B) Monetarists believe that the economy is self-regulating. C) There is very little difference between monetarist and Keynesian thought. D) Monetarists hold that velocity is constant. E) a and c