Which of the following decisions is the best example of a business engaging in marginal thinking?
a. choosing whether or not to manufacture an entirely new product line
b. deciding to discontinue using newspaper advertising completely
c. evaluating whether it would increase profits to add a second shift at their factory
d. identifying the opportunity that will be lost when a certain action is taken
c. evaluating whether it would increase profits to add a second shift at their factory
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All of the following are true about foreign direct investment (FDI) and portfolio investment EXCEPT
A) increases in the flow of portfolio investments increase the likelihood of financial crisis. B) both portfolio investments and FDI are the same in that they both give their holders a claim on the future output of the foreign economy. C) FDI is relatively illiquid compared to portfolio investment. D) portfolio investments have been on the decline in recent years (or decades). E) FDI investors must be willing to go through many ups and downs in order to benefit from their long-term investments.
The only two options to control the growth of healthcare spending are
a. price controls and political rationing or competition and market prices. b. taxation or political mandates. c. subsidizing of healthcare insurance or government provision of healthcare. d. free healthcare or subsidized healthcare.
Fixed costs are sometimes referred to as _____ costs because once you've obligated yourself to them, they cannot be recovered.
Fill in the blank(s) with the appropriate word(s).
________ refers to the implicit cost associated with the next best alternative in a set of choices available to decision-makers
A) Specialization B) Resource scarcity C) Opportunity cost D) None of the above