The opportunity cost of an economic action is
a. the value of the next best alternative that must be sacrificed
b. an issue in normative economic theory
c. the expense for the resources used plus the firm's profit
d. the out-of-pocket cost
e. the option to pay a reduced fee for the action
A
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A decreasing-cost industry will have
A) a perfectly elastic long-run supply curve. B) a perfectly inelastic long-run supply curve. C) an upward sloping demand curve in the long run. D) a downward sloping supply curve in the long run.
Since the Great Depression, business fluctuations have become more severe and longer in duration
a. True b. False Indicate whether the statement is true or false
The HO model predicts that once trade begins factor prices will equalize between countries. This result occurs because of the assumption of
A) identical technology sets available to each country. B) constant opportunity costs. C) one factor of production. D) free international mobility of factors.
Reducing ________ unemployment may be beneficial for an economy, but reducing ________ unemployment to zero would definitely reduce the efficiency of the economy
A) structural and frictional; cyclical B) frictional and cyclical; structural C) the natural rate of; cyclical D) structural and cyclical; frictional