The concept of opportunity cost exists because
A) of scarcity.
B) goods have different prices.
C) of shortages.
D) the value of services is hard to determine.
A
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Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's theorem, one necessary condition to alleviate the externality is that
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Bert has the right to a clean park and Al cannot leave trash. D) Either Al or Bert owns the park.
The concept of _________________ means that as the measure of output goes up, average costs of production decline-at least up to a point.
a. relative advantage b. economies of scale c. absolute advantage d. comparative advantage