The model that economists use for illustrating the process of individual choice in a situation of scarcity is the _____, sometimes also called the opportunity set, a diagram which shows what choices are possible.
A. opportunity set
B. consumption choice
C. time value of money
D. risk premium
A. opportunity set
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The Western railroads had been granted vast amounts of land by the government. Consequently, they
(a) Held on to it tightly. (b) Produced a competitive market with homesteading. (c) Wanted to profit only from providing railroad services. (d) Hindered economic development by restricting new farms in the West.
The highest form of competition is called
a. absolute competition. b. cutthroat competition. c. perfect competition. d. market competition.
In a perfectly competitive industry, economic profit
A. Can persist in the long run because of homogeneous products. B. Will always be negative in the long run because of ease of entry. C. Can persist in the long run because of barriers to entry. D. Will approach zero in the long run as more firms enter the market.
An emission charge
A. Increases private marginal cost and reduces output. B. Increases private marginal cost and increases output. C. Reduces private marginal cost and reduces output. D. Reduces private marginal cost and increases output.