The concept of opportunity cost:
A. is irrelevant in socialistic economies because of central planning.
B. suggests that the use of resources in any particular line of production means that
alternative outputs must be forgone.
C. is irrelevant if the production possibilities curve is shifting to the right.
D. suggests that insatiable wants can be fulfilled.
Answer: B
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Refer to Figure 17-4. Which of the following is true if the wage rate increases from W1 to W2?
A) The substitution effect becomes larger than the income effect. B) The income effect becomes larger than the substitution effect. C) The supply curve is unit elastic. D) The income effect and the substitution effect are equal.
Economic rent refers to profit derived from owning an apartment complex
a. True b. False Indicate whether the statement is true or false