As production of a good increases, opportunity costs rise because:
A. there will be more inefficiency.
B. people always prefer having more goods.
C. of inflationary pressures.
D. workers are not equally suited to all tasks.
Answer: D
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Suppose that initially a market is in equilibrium at a price of $10 and a quantity of 5000 units per day. Several months later, the market is in a new equilibrium at a price of $5 and a quantity of 5000 units per day. What happened in the market?
What will be an ideal response?
The scientific method is useful
a. only in fields of science such as chemistry and physics b. for testing the validity of theoretical predictions c. for testing the validity of a model's assumptions d. when no economic variables can be assumed to be constant e. only if a theory has been proven to be true
The amount of money in an economy that people can invest is equal to:
A. the value of their output. B. their savings. C. the value of consumption after gains from trade have been made. D. their income.
As a firm's output expands, the
A. ATC will reach a minimum before the AVC. B. AVC will reach a minimum before the ATC. C. ATC and AVC will reach minimums at the same output.