A rational decision is one that
a. satisfies all desires.
b. avoids the intentional allocation of resources.
c. assigns available resources in the manner most preferred by decision makers.
d. assigns available resources to the uses with the lowest opportunity costs.
c
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If a worker is temporarily laid off because the economy is in a recession
A) frictional unemployment increases. B) structural unemployment increases. C) the size of the labor force rises. D) cyclical unemployment increases.
Demand is price elastic if a
A) relatively large price increase leads to a relatively small decrease in the quantity demanded. B) relatively small price increase leads to a relatively large decrease in the quantity demanded. C) price increase leads to a decrease in the quantity demanded. D) price increase leads to an increase in the quantity demanded.
Producer surplus is the price of a good minus the opportunity cost of producing it, summed over the quantity produced
Indicate whether the statement is true or false
Which of the following could cause the market demand curve for hot dogs to shift to the left?
a. an increase in the price of hot dogs b. a decrease in the price of hamburgers c. an increase in the size of the population d. an increase in the price of hot dog buns or rolls e. an increase in the price of mustard