Why is economic cost known as opportunity cost? What are included in economic costs?

Q: Which of the following is not seen by economists as an underlying cause of business cycle…

A: The business cycle, also known as the economic cycle, refers to the fluctuations of economic…

Q: Which of the following will most likely cause a nation's currency to appreciate on the foreign…

A: The foreign exchange market determines the exchange rate  price of the foreign currency. The…

Q: QUESTION 1 One of the solutions to the adverse selection problem in insurance is O a. Is to require…

A: The buyers and sellers have different knowledge and information regarding the insurance market. Due…

Q: Sofia, a political science student, thinks that the government should in reasons, can resolve the…

A: Coordination Problem:A coordination problem refers to a situation where individuals or agents in a…

Q: Simone and her employer both expected inflation to be 3% between 2012 and 2013, so they agreed, in a…

A: The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by…

Q: Two identical firms that share a market and produce a homogenous good will find the Bertrand…

A: An oligopoly is a market structure in which few firms overwhelm and contend inside an industry.…

Q: Match the periods of time to the approximate values of the ratio of WV per capita income to NY state…

A: The average income per person in a certain region is known as per capita income. The average income…

Q: For the demand function P = 221 √Q+3 a) Find the value of Q when P = 17 b) Find the price elasticity…

A: PED is a measure used in economics to quantify the responsiveness of the quantity demanded of a good…

Q: Last year, $100 million in outstanding bank loans to a developing nations government were not…

A: The gross foreign investment includes fresh investments and reinvested profits. It is the total…

Q: Figure 8-24. The figure represents the relationship between the size of a tax and the tax revenue…

A: Tax is imposed by the government on the income of individuals or corporations to fund public…

Q: K Use the information in the table to answer the following questions. All numbers are in billions of…

A: The Gross domestic product is a country's final value of goods and services in a year. GDP is a…

Q: In the long run a company that produces and sells popcorn incurs total costs of $1,000 when output…

A: Economies of scale occur when the average total cost (ATC) decreases as output increases in the long…

Q: A nation's capital stock will decline when Onet investment is positive, but less than gross…

A: Production is the motor that propels an economy forward, with the mixing of commodities and services…

Q: Henry's utility function is u(x,y)=max{x+3y,3x+y}. (a) Suppose Henry's current consumption bundle is…

A: An indifference curve is a graphical representation used in microeconomics to illustrate a…

Q: g. h. Assume c = 1. Solve for the optimal w that U sets. Write down U - D1's profit when c = 1.…

A: Oligopoly is a market structure in economics characterized by a small number of large firms or…

Q: Figure 3. The graph depicts the market for fertilizer. Price 500 450- 400 350- 300 250 200- g 150-…

A: There are various products that are sold in high quantity but yield a huge amount of negative…

Q: Consider national parks, which can be thought of as a public good, and in particular consider the…

A: Externalities, in economics, refer to the unintended side effects or consequences of an economic…

Q: In the graph, consumer surplus is equal to 22 16 2 0 $60 O $120 O $320 $440 20 . S D

A: The economic benefit or utility that consumers derive from purchasing and consuming a product at a…

Q: While the CPI focuses on changes to prices for consumers, the PPI: All of these statements are true.…

A: CPI or the Consumer Price Index helps measure the average change in price of a fixed basket of goods…

Q: A positive externality arises when a third party, outside the market transaction, fails to allocate…

A: An externality is an incidental effect or result of an industrial or commercial action that…

Q: A free market is described by which of the following statements? a. Decisions are centralized b. The…

A: Market is a place where buyers and sellers meet to sell good and services.

Q: Farmer Brown grows peaches. The average total cost and marginal cost of growing peaches for an…

A: Farmer Brown grows peaches in a perfectly competitive market. The market price of peaches is $40 per…

Q: A company has established that the relationship between the sales price for one of its products and…

A: Profit maximization is an objective pursued by firms. It entails optimizing their output and pricing…

Q: The Beveridge Curve shows that cyclical hiring means that when the unemployment rate is…

A: Beveridge Curve: A graphical representation illustrating the inverse relationship between the…

Q: Use the expenditure approach to calculate the value of the GDP in column B. Use the income approach…

A: This can be defined as a concept that shows the total production of products and services in an…

Q: Which of the following is true regarding different types of inflation? Cost-push inflation is…

A: Cost-push inflation: An inflation type driven by increased production costs, leading to higher…

Q: A diamond mining company has just purchased a new crystal extraction machine that cost $5000, and…

A: Depreciation is the process by which businesses allocate the cost of tangible assets over their…

Q: 31. The primary concern of economists worried about the crowding out effect is the A) growing size…

A: The crowding-out effect is an economic phenomenon that occurs when increased government spending,…

Q: Consider the production of hamburgers. The average total cost (ATC) and average fixed cost (AFC) of…

A: Average Fixe­d Cost (AFC) takes on a crucial role as it define­s the fixed cost that each unit of…

Q: Papayas Price (2015, base Quantity (2015, year) base year) $12 Watermelon $24 3.74% 1.95% 2.27%…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: What is included in U.S. aggregate demand? all spending by households and firms in the United States…

A: The components of aggregate demand include investment spending (I), consumption spending (C),…

Q: As a firm buys more capital and less labor, the marginal physical ________ and the marginal physical…

A: It describes a scenario in which, in a production process with at least one fixed factor of…

Q: QUESTION 11 Exhibit 3-10 Price of X (dollars) 8 9 0 100 200 Quantity of X Refer to Exhibit 3-10. $20…

A: The market is at equilibrium where demand and supply curves intersect each other.

Q: What can you use to establish whether a budget has been allocated to maximise total utility?…

A: A budget is an expenditure plan that specifies how much money is available for use by a person or…

Q: What type of trade disputes was Brazil involved in? How do you interpret this?

A: Country B plays a major role in the world trade market. It is known for its diverse export…

Q: Cost Table 1 Q TFC TVC TC AFC AVC ATC MC 0 36 0 36 1 36 9 45 36 2 36 A B C 3 36 135 171 E 4 I J 336…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VCFixed cost is the cost that…

Q: The total amount of consumer surplus and producer surplus is at its maximum when A. consumers and…

A: The continually shifting link between supply and demand, price adjustments, and consumer behavior is…

Q: You rent a car for $29.95. The first 100 miles are free, but each mile thereafter costs 10 cents.…

A: Marginal cost: The additional cost incurred when producing or consuming one more unit or service.

Q: 15. Holding all else constant, a higher price for ski lift tickets would be expected to O A.…

A: Law of demand states that increase in price of particular product leads to decrease in demand for…

Q: The total amount of producer surplus in a market is equal to A) the area between the demand curve…

A: Producer surplus is the benefit enjoyed by sellers by selling their product at market price higher…

Q: MC AFC AC AVC Quantity Refer to the diagram above. Based on the information illustrated in the…

A: The additional expense required to produce a single additional piece of output is known as the…

Q: Refer to Figure 10-20. Without government intervention, a. there is no clear relationship between…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: The table shows the prices that Terry paid for some of his expenditures in June and July 2019.…

A: Commodity substitution occurs when consumers buy more of one item due to a relative price decrease,…

Q: From 1970 to 2017, the real price of a college education increased, and total enrollment increased.…

A: The demand is defined as the desire of an individual to  buy a product. The individual must have…

Q: Question 2 Mark has an income of $500 per month, and he spends it on two goods, apples and bananas.…

A: Opportunity cost is the concept in economics that represents the value of the next best alternative…

Q: Texas is known for producing rockets and computers. Using the PPF, graph and explain the impact of…

A: A production possibility frontier represents the maximum output combination of two goods (say…

Q: As a result of an increase in the growth rate of the money supply:   real GDP growth increases…

A: Money supply:It refers to the total quantity of money in the economy. The money supply of any…

Q: Consider the production function of widget: Q = 28K0.8 L0.4, where Q is units of output per month. K…

A: The production function shows the relationship with the input used and output produced.There is…

Q: A small country can import a good at a world price of 10 per unit. The domestic supply curve of the…

A: The relationship between a product's change and the degree to which it is demanded by customers is…

Q: These are Multiple Choice Questions, only need to choose one (alphabet) answer (from A to D) for…

A: Marginal product refers to the additional output or production that is generated by using one more…