Because resources are scarce, the opportunity cost of investment in capital is
A. forgone present consumption.
B. infinite.
C. zero.
D. forgone future consumption.
Answer: A
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When drawn against the real interest rate, the output demand curve shifts to the right when
A) current total factor productivity z increases. B) current total factor productivity z decreases. C) future total factor productivity z' increases. D) future total factor productivity z' decreases.
The theory of regulatory behavior that predicts that the "regulators" eventually will become controlled by the "regulated" is called
A) the capture hypothesis. B) the the share-the-gains, share-the-pains hypothesis. C) the asymmetric information hypothesis. D) the market failure hypothesis.
Suppose when the price of pineapples goes from $5 to $3 per pineapple, production decreases from 3,500 pineapples to 2,000 pineapples per year. Using the mid-point method, the percentage change in price would be:
A. 0.50 B. 50 percent C. 0.54 D. 54 percent
Along a consumer's demand curve, price reflects
a. the costs of production b. the dollar value of the total utility from the good c. the dollar value of the marginal utility of each additional unit of the good d. the maximum quantity that could be purchased, given income e. non-rational decision making