Moving along a PPF, marginal cost is
A) the cost of producing the first unit of a good or service.
B) the total cost, less the production of the other good or service.
C) greater than the opportunity cost.
D) equal to the opportunity cost of producing one more unit of a good or service.
D
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In a community where poor people do not associate with members of the opposite sex until they are 21 years old, the cost of hiring a babysitter on weekends will be
A) higher than in other communities. B) lower than in other communities. C) prohibitive. D) zero.
Which of the following is TRUE regarding markets?
I) Economists define a market as a geographic location where trade occurs. II) A market enables buyers and sellers to get information about each other and to buy and sell from each other. III) Markets coordinate decisions through prices. A) I only B) I and III C) II and III D) I, II and III