The amount of a good that must be given up to produce another good is the concept of:
A. scarcity.
B. specialization.
C. opportunity cost.
D. efficiency.
Answer: C
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Probably the most important source of efficiency in production is
A. investing in more capital goods. B. consuming rationally. C. expanding the production possibilities frontier. D. increasing inputs of energy and raw materials. E. the specialization of labor.
If we compare regulating a natural monopoly using a marginal cost pricing rule to using an average cost pricing rule, we see that output is
A) greater with marginal cost pricing, but average cost pricing allows for costs to be covered. B) the same under both cases, but the profit is greater with average cost pricing. C) greater under average cost pricing, but profits are greater with marginal cost pricing. D) the same but profits are greater with marginal cost pricing. E) greater with marginal cost pricing, and the firm's profit is larger with marginal cost pricing.
If your demand for a good is ________, then a 1 percent fall in its price will lead you to ________ your expenditures on the good
A) inelastic; increase B) inelastic; decrease C) elastic; increase D) elastic; decrease
Changes in domestic and foreign income result in:
A) movements along the demand and supply curves of the foreign exchange market. B) shifts in the demand and supply curves of the foreign exchange market. C) all of the above. D) none of the above.