Shifting resources away from producing one good in order to produce another is an example of
a. Unlimited resources
b. Limited wants
c. Opportunity cost
d. None of the above
c
You might also like to view...
FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
A) Most economists believe the burden of the tax falls almost entirely on workers. B) Congress wanted the burden of the tax to be greater for employers than for workers. C) Most economists believe the burden of the tax falls mostly on employers. D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
The problem created by asymmetric information before the transaction occurs is called ________, while the problem created after the transaction occurs is called ________
A) adverse selection; moral hazard B) moral hazard; adverse selection C) costly state verification; free-riding D) free-riding; costly state verification
The housing market of the early to mid-2000s did not feature:
a. "teaser rates" on home mortgages. b. a dramatic rise in housing prices. c. widespread calls to end "predatory" lending practices. d. "subprime" mortgages.
The monopolistic competitor
A. produces at the minimum point of her average total cost curve. B. maximizes profits but does not minimize losses. C. is usually a small firm. D. can be a monopoly.