Pork can be used to produce bacon or sausage, but not both. If the price of bacon rises for some reason, then, everything else equal,
a. the price of sausage will rise.
b. the price of sausage will fall.
c. the resources used in raising Pork will become more expensive.
d. the resources used in raising Pork will become less expensive.
a
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The divergence between money costs and opportunity costs will be greatest in which of the following situations?
A. A university purchases 100 computers. B. A university employs people from town in the cafeteria (the other alternative is to work at a paper mill). C. A university employs otherwise unemployed teenagers to paint crosswalks and curbs. D. A university replaces the roof of the fine arts building.
If the managers of the bus system found that revenues increase when fares are raised, they would conclude that price elasticity demand for subway service is inelastic
a. True b. False Indicate whether the statement is true or false
In the context of aggregate supply, the long run is defined as the period during which
a. some prices are set by contracts and cannot be adjusted. b. prices can change, but neither aggregate supply nor aggregate demand can shift. c. individuals have sufficient time to modify their behavior in response to price changes. d. quantity changes cannot occur in response to changes in relative prices.
As a consequence of the condition of scarcity:
a. There is never enough of anything b. Things which are plentiful have relatively high prices c. Production has to be planned by government d. Individuals have to make choices from among alternatives