If a consumer is at an optimum, consuming A and B, and the price of B decreases, then to get to a new equilibrium the consumer must
A. purchase more A.
B. purchase less A.
C. purchase more of both A and B.
D. purchase less B.
Answer: B
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Marginal cost is the cost
A) that your activity imposes on someone else. B) that arises from an increase in an activity. C) of an activity that exceeds its benefit. D) that arises from the secondary effects of an activity.
Poorer countries started to develop economically when they
A. focused on domestic economic regulation. B. focused on becoming net traders. C. focused on becoming importers. D. figured out what the rest of the world wanted, and responded.
What is the difference between explicit and implicit costs?
What will be an ideal response?
What other economic process needs to accompany international trade, for nations to benefit from such trade?
A. Specialization in production B. Nationalization of industries C. Regulation of production and trade D. Spreading out of resources in more industries