Suppose you are deciding whether to spend your tax rebate check on a new iPod or a new digital camera. You are dealing with the concept of
A. the fallacy of composition.
B. equity.
C. comparative advantage.
D. opportunity costs.
Answer: D
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Define the factor of production called capital. Give three examples of capital, different from those in the chapter. Distinguish between the factor of production capital and financial capital
What will be an ideal response?
Which of the following statements about the price elasticity of demand is correct?
A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. B) Demand is more elastic in the long run than it is in the short run. C) The absolute value of the elasticity of demand ranges from zero to one. D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.
In the United States, most periods of very high inflation occurred
A) during times of war. B) during recessions. C) in the past 25 years. D) before the year 1800.
When you buy something, you do so because of the satisfaction you expect to receive from having and using that good. Another term that can be used for satisfaction is
A) need. B) purchasing power. C) utility. D) price elasticity.