The concept of opportunity cost is based on the principle of
A. scarcity.
B. profit.
C. need.
D. consumption.
Answer: A
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Which of the following is the largest measure of money in the United States?
A) Federal Reserve notes B) definitive money C) M1 D) M2
In an open economy net exports must always be positive
a. True b. False Indicate whether the statement is true or false
Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country:
A. is producing the same number of capital goods in both years. B. is producing the same number of consumption goods in both years. C. has shown no growth between Year X and Year Y. D. has higher unemployment in Year X than in Year Y.
A payment to an owner of a resource in excess of its opportunity cost is know as
A) real wages. B) economic rent. C) financial interest. D) accounting profits.