In what sense is it a cost that people must spend time and resources coping with inflation?
a. Because the loss of time and resources frustrates people unnecessarily
b. Because the time and resources could have been used to produce something else instead
c. Because the time and resources could have been wasted elsewhere
d. Because the time and resources are a sunk cost
e. Because the time and resources are insufficient to cope with the problem
B
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Consumer’s surplus is what one consumer is willing to pay for a commodity over what another consumer is willing to pay for the same commodity.
Answer the following statement true (T) or false (F)
Which of the following is NOT one of the components for computing GDP based upon the income approach?
A) investment B) corporate profits C) compensation of employees D) net interest
A country has had its per capital real GDP remain constant for several years. During this period this country
A) has not experienced any economic growth. B) may have experienced economic growth if the average hours worked per week have fallen. C) will have experienced an inward shift of the production possibilities curve. D) will have an increase in the number of poor people.
For an individual who consumes only two goods, x and y, the opportunity cost of consuming one more unit of x in terms of how much y must be given up is reflected by:
a. the individual's marginal rate of substitution. b. the market prices of x and y. c. the slope of the individual's indifference curve. d. none of the above.