Which of the following statements is not compatible with the opportunity cost theory?
A) Demand plays a role in the determination of costs.
B) Labor costs depend upon the demand for labor.
C) Relative prices reflect the relative amount of human labor required to produce goods.
D) Supply as well as demand depends upon subjective preferences.
C
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Checkable deposit account balances are
A) only a small component of the money supply. B) counted in the calculation of the money supply. C) part of M2 but not part of M1. D) considered credit, but not money.
An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) the purchase of General Motors stock by a German resident. B) the purchase of a Mercedes-Benz by an American. C) a Nissan plant in Tennessee buying parts from the main plant in Japan. D) a gift of wheat from the United States government to Egypt.