Economic cost differs from accounting cost because accountants do not consider implicit costs.
Answer the following statement true (T) or false (F)
True
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As production of a good increases, opportunity costs rise because:
a. there will be more inefficiency. b. people always prefer having more goods. c. of inflationary pressures. d. workers are not equally suited to all tasks.
When economists make
a. positive statements, they are speaking not as policy advisers but as scientists. b. positive statements, they are speaking not as scientists but as forecasters. c. normative statements, they are speaking not as policy advisers but as scientists. d. normative statements, they are speaking not as policy advisers but as model-builders.
What happens to a market in equilibrium when there is an increase in supply?
a) excess supply means that producers will make less of the good b) quantity demanded will exceed quantity supplied, so the price will drop c) quantity supplied will exceed quantity demanded, so the price will drop d) undersupply means that the good will become very expensive
When demand is perfectly inelastic the buyer pays _____ of a tax.
A. all B. most C. half D. less than half