When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of
A) a market mechanism.
B) macroeconomics.
C) opportunity cost.
D) a fallacy of composition.
C
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The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are unwilling to offer discounts b. the Vice President does not want to negotiate aggressively enough to maximize profits c. the sales staff want to negotiate too aggressively d. the Vice President is more willing to offer discounts to make the sale
In terms of aggregate supply, a period in which nominal wages and other resource prices are unresponsive to price-level changes is called the:
A. long run. B. short run. C. immediate market period. D. very long run.
True or false? The Edgeworth box version of interpersonal trade requires the individuals to be in close proximity of one another
A) True, that way they can see each other's endowments and prices. B) False, being in close proximity is not required for mutually beneficial trade to occur in the Edgeworth box. C) True, the Edgeworth box only works when there folks see "eye-to-eye." D) False, although prices are only valid if they are communicated in person.
Refer to the graphs below for a competitive market in the short run. What will happen in the long run to industry supply and the equilibrium price P of the product?
A. S will decrease, P will decrease
B. S will increase, P will decrease
C. S will decrease, P will increase
D. S will increase, P will increase