When two individuals agree to a voluntary exchange, Select one:
a. Both receive more than what they give up.
b. They place an equal value on what they receive and what they give up.
c. If one of them gains, the other must lose.
d. Neither of them gains unless the trade expan
a. Both receive more than what they give up.
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Doris, a burglar who breaks into houses, decides to break into the house at 265 Elm Street, rather than the house next door because the house next door has a sign in the yard that says "home protected by a security system." To an economist, Doris is...
What will be an ideal response?
Which of the following is an example of opportunity cost?
A. The income that could have been earned by working full-time instead of going to college. B. The decline in the grades of a student athlete that occurs because she decides to spend more time practicing sports than on her academic work. C. The value of other things you could have done with the same time and money it cost you to go to the movies. D. All of the choices are examples of opportunity cost.
For a perfectly competitive firm, the short-run break-even point occurs at the level of output where
A. MR < P = MC. B. P > MR = MC. C. MR = P > MC. D. P = MC = ATC.
In order to compare benefits today with future costs, we need to know:
A. the interest rate. B. the rate of inflation. C. the uncertainty associated with future benefits and costs. D. All of these statements are true.