Recall the Application about Rory McIlroy and weed-whacking to answer the following question(s). The Application assumes that Rory McIlroy could whack down all the weeds on his estate in one hour at an opportunity cost of $1,000, but it would take 20 hours for a gardener to do it at a price of $10 per hour.This Application addresses the economic concept of:
A. the marginal principle.
B. diminishing returns.
C. specialization and exchange.
D. real versus nominal costs.
Answer: C
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Price controls would ordinarily be used to increase rather than decrease prices of depletable resources
a. True b. False Indicate whether the statement is true or false
The demand for a luxury good whose purchase would exhaust a big portion of one's income is:
A. perfectly price inelastic. B. perfectly price elastic. C. relatively price inelastic. D. relatively price elastic.
Marginal product of labor refers to the
A. change in total product resulting from employing one more unit of labor. B. total product divided by the number of units of labor employed. C. smallest amount of output produced by labor. D. last unit of output produced by labor at the end of each period.
Capital deepening is the only mechanism by which economies can grow
Indicate whether the statement is true or false