Economists believe that people respond in a predictable way to changes in costs and benefits. The term that best describes this phenomenon is
a. opportunity cost
b. scarcity
c. innovation
d. marginal analysis
e. other things equal (or ceteris paribus)
D
You might also like to view...
The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.Number ofCar WashesPer MonthTotal MonthlyBenefit fromCar Washes0$01$202$363$484$565$60What is the marginal benefit of the 3rd car wash each month?
A. $12 B. $4 C. $48 D. $16
Suppose after the semester ends, you take a trip to a tropical island. Upon arriving at the island, you make a stop at one of the markets and notice that everyone is carrying around jars full of little turtles
You also notice the person in line in front of you just paid for a bottle of rum with 6 turtles. Someone else just bought a straw hat for two turtles. Thinking back to your economics class (as painful as that may be), you would conclude that A) turtle soup is a delicacy. B) turtles are valueless. C) this is a barter economy. D) those little turtles are serving as money.
What is meant by "gains from specialization"?
What will be an ideal response?
Economic activity initiated by market participants imposes costs on free riders
Indicate whether the statement is true or false