The opportunity cost to a consumer who smokes cigarettes consists of the
A. costs imposed on others who inhale second-hand smoke.
B. amount of cigarette taxes paid by this consumer.
C. product that the consumer could have bought instead of cigarettes.
D. cost of complementary products such as lighters, ashtrays, and cigarette holders.
Answer: C
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Which of the following is NOT a description of indirect finance?
A) You take out a student loan from your bank. B) You borrow $500 from your best friend. C) You buy shares in a mutual fund. D) An insurance company lends funds to IBM.
A rent ceiling on housing creates a problem of allocating the available housing units because
A) the demand for housing decreases and the demand curve shifts leftward. B) the supply of housing increases and the supply curve shifts rightward. C) a shortage of apartments occurs. D) a surplus of apartments occurs. E) it eliminates search, which is one of the major ways housing units are allocated.
Governments often choose to regulate monopolies, rather than break them up into smaller firms, because monopolies often are
a. entitled to economic profits b. very big and politically powerful c. more efficient producers d. providing useful goods and services that would not otherwise be provided e. heavily subsidized
People who are not currently employed, but say they want a job, are counted as unemployed only if they
a. have previously held a job b. are actively seeking employment c. are willing to accept any reasonable wage rate d. are between 16 and 65 years of age e. are willing to accept any offer of employment