"There is no such thing as a free lunch." This statement best reflects the fact that
a. consumers are unwilling to pay for a good unless it provides them with value.
b. an opportunity cost is always present when scarce resources are used to produce a good.
c. it generally requires enormous effort to search out the best place to eat lunch.
d. the value of a good to consumers will decrease as they have more of it.
B
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The more human capital workers have, the:
A. more productive they are. B. more technology they will require for their job. C. lower the value of their marginal product. D. less productive they are.
The demand curve for the product of a monopolistically competitive firm slopes downward because
A) products are perceived by consumers as different. B) products are homogeneous. C) people only care about price when they buy a good. D) the firm's goal is to maximize profits.
When people hold money to transact purchases they expect to make, this is known as the:
a. precautionary demand for money. b. liquidity demand for money. c. spending demand for money. d. speculative demand for money. e. transactions demand for money.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.