Economic decision making recognizes that
A) all choices have benefits and costs.
B) benefits are largely free while costs are not.
C) costs are controllable but benefits are not measurable.
D) prices do not reflect all information known to managers.
E) resources and wants are limited.
A
You might also like to view...
Assuming the price level has not changed, how would an increase in the aggregate demand affect real GDP?
A) It only changes with changes in exports. B) It increases. C) It only changes with changes in imports. D) It decreases.
Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5 . If the government imposes a tax of $3 per unit on domestic producers, which of the following situations will be observed?
a. The tax will increase the price of Good A in the domestic market. b. The tax will increase the world price of Good A. c. The tax will decrease the profit earned by domestic producers. d. The tax will decrease the price of Good A in the domestic market.