Suppose that a local government decides to provide more funds to the local police department in order for the department to hire additional police officers. Is there an opportunity cost of this action? If so, how would you measure it?
What will be an ideal response?
Yes, there is an opportunity cost. The opportunity cost should be measured by the next best alternative use of the funds provided to the police department.
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In the economic way of thinking, the right to coerce adults is
A) immoral. B) a property right. C) the most efficient way for management to control labor. D) necessarily antithetical to a free and open society. E) good because it's rooted in the Old Testament.
Refer to Figure 12-15. Suppose a typical firm in a perfectly competitive market is earning economic profits in the short run. Which of the diagrams in the figure depicts what happens in the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
Price will always exceed marginal cost for the profit-maximizing monopolist, or any price-setter firm for that matter
Indicate whether the statement is true or false
The labor force participation rate for women in the United States has _____
a. stayed the same over the last 30 years b. increased significantly since the 1950s c. decreased significantly since the 1950s d. fluctuated substantially both upward and downward since the 1950s e. increased only very slightly since the 1950s