Refer to Scenario 3 . Assume that in one day, two huts were built and 75 coconuts were gathered. What does this situation depict?
What will be an ideal response?
The situation depicts the inefficient use of resources as the production point represents one that is inside the production possibilities frontier.
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What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain
What will be an ideal response?
Explain the circumstances under which some component of labor income is economic rent
Labor is defined as cheap only if its productivity is very low
a. True b. False Indicate whether the statement is true or false
If the demand for a good is elastic, when the price increases, the
A) demand will decrease. B) quantity demanded will increase. C) quantity demanded will decrease by a smaller percentage than the price increased. D) quantity demanded will decrease by a greater percentage than the price increased.