In order to acquire more of a good we must sacrifice production of another good, because resources are in limited supply. This illustrates the concept of:
a. the division of labor.
b. ceteris paribus
c. opportunity cost.
d. specialization.
c
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The opportunity cost of an activity is
A) the dollar cost to engage in the activity. B) the value of the resources needed to conduct the activity. C) the same for all who participate in the activity. D) what you sacrifice to engage in the activity.
During World War I (1914–18), the government supported the cause of labor when it
(a) reduced the work day to eight hours in all government jobs. (b) reduced the work day to eight hours in all private sector jobs. (c) enforced the eight-hour work day in all government jobs. (d) enforced the eight-hour work day in all private jobs.
An inferior good is one for which demand increases as
a. price decreases b. price increases c. income increases d. income decreases e. the price of a related good decreases
Which of the following statements explains the situation when the United States consistently has a large current account deficit over time?
a. The United States exports a larger amount of goods and services than it imports. b. The United States sends more capital abroad than it receives from abroad. c. The United States receives more transfers from abroad than it sends abroad. d. The United States sells more assets to foreigners than it purchases from foreigners.