Evaluate the following statement. "I used my own money, my own land and my own equipment to start my business. Therefore I don't have any costs associated with running my business"
What will be an ideal response?
This is poor reasoning since all resources have an opportunity cost. Even though the money is the owner's it could still have been used for another purpose that might make him even more money. The land and equipment also could have been rented to someone else. The fact that no money changes hands doesn't make the cost of running the business go away.
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The interest rate on loans made by banks in the market in which they lend and borrow reserves from each other for very short periods of time is known as the:
a. discount rate. b. legal reserve rate. c. federal funds rate. d. open market rate. e. margin rate.
Obstacles that restrict trade, either domestic or international, will
What will be an ideal response?
Which of the following statements is? true?
A. The longer any price change? persists, the greater the elasticity of demand. B. The closer the substitutes for a particular commodity and the more substitutes there? are, the more inelastic will be its price elasticity of demand. C. The smaller the share of a? person's total budget that is spent on a? commodity, the greater that? person's price elasticity of demand is for that commodity. D. The demand for necessities is likely to be? elastic, while the demand for luxuries is likely to be inelastic.
Marco’s country has advanced technology and the facilities necessary to produce a high volume of goods. Kiera’s country has the same advanced technology and very similar facilities, but the workers in her country produce more output. What is the most likely cause of this difference?
a. The workers in Marco’s country are more educated. b. The workers in Kiera’s country are older. c. The workers in Marco’s country are older. d. The workers in Kiera’s country are more educated.