The strength of the demand for a resource depends on the following factors, except:
A. Supply of the resource
B. Productivity of the resource
C. Price of the product the resource helps to produce
D. Demand for the product the resource helps to produce
A. Supply of the resource
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Consumption expenditures do not include household purchases of
A) medical care. B) education. C) new houses. D) durable goods.
Maggie is trying to convince her friend Hannah to spend the morning at the beach instead of studying economics. Maggie’s argument is that the beach is free so will not cost Hannah anything to go. Maggie even volunteers to drive. Maggie’s argument
a. is correct; it is free to go to the beach. b. is forgetting Hannah’s opportunity cost of not being able to study. c. assumes Hannah has to eat at home or the beach so it will not cost Hannah additional money. d. is forgetting sunk costs.