When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms, the cost of additional students is really zero, she is using the
A. law of comparative advantage.
B. principle of marginal analysis.
C. theory of externalities.
D. notion of the cost decreases of the service sector.
E. concept of opportunity cost.
Answer: B
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One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries
A) factor endowments B) scale of production C) factor intensities D) technology E) opportunity costs
Which of the following represent examples of adverse selection?
A) Unhealthy people are more likely to want health insurance. B) Careless drivers purchasing extra auto insurance. C) Risk averse individuals choosing to buy extra insurance. D) all of the above E) A and B only
A firm's short-run average cost is defined as
a. the ratio of total output to short-run total cost. b. the ratio of short-run total cost to total output. c. the additional cost of producing one more unit of output while some input is fixed. d. the additional cost of producing one more unit of output while all inputs are fixed.
When individuals are unemployed because they lack the qualifications to fill available jobs, this is called
a. frictional unemployment. b. natural unemployment. c. cyclical unemployment. d. structural unemployment.