In economics, we assume a rational person will choose to do an activity:
A. if the opportunity costs outweigh the benefits of doing so.
B. if the sunk costs outweigh the benefits of doing so.
C. if the sunk and opportunity costs combined outweigh the benefits of doing so.
D. if the opportunity costs do not outweigh the benefits of doing so.
D. if the opportunity costs do not outweigh the benefits of doing so.
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Which of the following characteristics is essential if a good is to be efficiently provided by a market economy?
a. The good should be subject to overuse. b. The good should be subject to the free rider problem. c. The good should be a common resource. d. The good should be excludable and rival in consumption
When a resource has a perfectly inelastic supply curve
A) the amount of economic rent for this resource is determined by its supply. B) the amount of economic rent for this resource is determined by demand for the resource. C) the amount of economic rent for this resource is determined by the government. D) there is no economic rent being earned by this resource.