What is an opportunity cost?
What will be an ideal response?
An opportunity cost is what you sacrifice to get something.
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Dell uses outsourcing, that is, Dell buys the components of the computers it produces from other firms. This is an example of
A) firm coordination. B) a partnership. C) a command system. D) market coordination.
In the short run, an increase in the money stock growth rate
a. moves the economy up the short-run Phillips curve. b. moves the economy down the short-run Phillips curve. c. shifts the short-run Phillips curve to the right. d. results in a decline in the natural rate of unemployment and a rise in the inflation rate. e. both b and d are correct.
Which of the following provides the foundation of the case for free trade?
a. The law of diminishing marginal utility b. The anti-dumping argument c. The industrial diversity argument d. The theory of comparative advantage
Answer the following statement(s) true (T) or false (F)
1. Large numbers of transactors lower transaction costs. 2. It is easy to exclude people from the benefits of clean air and water. 3. A private good is rival and excludable. 4. A public good is rival. 5. People who get benefits without paying for them are called free riders.