Basic economic problems Flashcards
questions about full cost
need to state that
time cost saved outweigh extra monetary cost
what is positive statement
can be tested against facts and it is refutable by fact
the postulate of constrained maximization assumes that…
we minimize cost as we need to maximize our self-interest
who determine the price in planned economy
the government
why free of charge doesnt necessarily means that the good is a free good
The good may be produced from scarce resources which have alternative uses (incurs opportunity cost)
More of the good may still be prefered
people are willing to pay a cost for them
can inflation occur in a barter economy
no
all goods are expressed in terms of relative price
when one good’s price increase another decrease
why free good must be free of charge
No opportunity cost in producing it
More of it is not preferred
No one is willing to pay a cost in obtaining it
So it si free of charge
what is the opportunity cost for banks to hold excess reserves
the interest received by banks from the loan borrower
impose an additional surcharge on the mainland pregnant women to give birth
what economics question is involved?
for whom only
XX how (method –> doctors those not about the charge)
interest definition for both lender and borrower
for borrower
it is the cost he paid for the earlier availability of the book
for lender
it is the compensation he received for deferring consumption
2012 q2mc (wrong 1000times alrdy :) ） which of the following will increase the cost of purchasing a car
first registration fee increase
or
price of gasoline increase
first registration fee increase
its about the cost of buying a car
not using a car
why past payment is not a cost
the payment made is incurred and irrecoverable
