Which of the following demonstrates opportunity cost?
A. With a new strain of wheat, the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming.
B. A tax cut increases people's purchases of consumer goods and decreases state expenditures on education.
C. The ravages of World War II reduced Japan's ability to produce goods.
D. Flora gets a 10% raise and increases her expenditures on movies.
B. A tax cut increases people's purchases of consumer goods and decreases state
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Which of the following is an example of a topic studied by macroeconomists?
A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm
If View Your World, a high-end window manufacturer, has contracted with a supplier to produce their glass, this is an example of ________.
A) outsourcing B) forward integration C) backward integration D) a market transaction
Using the above figure, the perfectly competitive firm should shut down if the market price is below
A) P1. B) P2. C) P3. D) P4.
Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. As the volume of crude oil increases, the marginal cost of production initially ________ at a moderate rate and then eventually ________ at a much faster rate.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases