If we move along a production possibilities curve and choose more of one type of good, the opportunity cost is measured in terms of the amount of the other good that is given up
Indicate whether the statement is true or false
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_______________ sold low-priced, prefabricated homes to people who wanted to move to the suburbs after World War II.
A. Andrew Carnegie B. William Levitt C. Henry Ford D. Cyrus McCormick
People (and all resources):
a. tend to specialize in those activities in which their opportunity costs are minimized. b. tend to specialize in those activities in which their opportunity costs are maximized. c. never consider opportunity costs before specializing in a particular activity. d. consider only direct costs while choosing to specialize in a particular activity. e. do not act in their own self-interest but specialize in those activities which benefit others.
The situation in which the money a person receives does not increase even though prices rise.
a. inflation b. economic system c. fixed income d. deflation
The decision to enter or exit an industry is known as the
A. Production decision. B. Profit maximization decision. C. Investment decision. D. Output decision.