T 20 Opportunity cost is the value of the next best alternative that is given

T 20 opportunity cost is the value of the next best

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T 20. Opportunity cost is the value of the next-best alternative that is given up as a result of making a particular choice. F 21. A decrease in supply causes price to fall and the quantity traded to increase. T 22. Economic laws are social laws—statements of tendencies, more or less certain, more or less definite. F 23. If demand is inelastic and price falls, then total revenue will rise. F 24 . An increase in the price of a product leads to an increase in supply. F 25. Equilibrium price implies that everyone who would like to purchase a product is able to. F 26. Surpluses drive prices up; shortages drive prices down. F 27. Macroeconomics focuses on the outcomes of decisions by people and firms, whereas microeconomics is a study of how the major components of an economy interact. F 28.The straight-line production possibilities curve illustrates the law of increasing cost. F 29. The term "demand" means the quantities that people would like to purchase at various prices. F 30. A firm’s total revenue is equal to price times demand. T 31. The price elasticity of demand coefficient is, technically, always negative, but for convenience economists ignore the minus sign. T 32. Technological improvement can be illustrated graphically by a rightward shift in the production possibilities curve. T 33. A point inside the production possibilities curve for an economy illustrates unemployment. F 34. A price floor, to be effective, must be set below the equilibrium price.
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  • Fall '15
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