In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society.
b. defined to be the highest-valued alternative that must be forgone when a choice is made.
c. best illustrated by knowing why consumers choose one good over another.
d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something.
e. the methodology that government economists use to determine the total amount of the national debt.
b
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If all Pareto improvements have been made
A) the result is increased government regulations. B) the outcome is Pareto efficient. C) consumer surplus is maximized. D) monopolists are unhappy.
Specialization in production is beneficial because
What will be an ideal response?
"A doubling of the price of gasoline in the 1970s did not reduce consumption one iota." The person making the above claim evidently thinks the demand for gasoline is
A) completely elastic. B) completely inelastic. C) greater than the supply. D) less than the supply. E) unit elastic.
The manufacturing sector is dominated by
A) corporations. B) partnerships. C) proprietorships. D) government firms.