Students assume that, on their campus, Fridays cause snow. This hypothesis a. should more properly be considered a theory. Economists make assumptions because a. they need to incorporate value judgments into their models. Why do consumers prefer one type of car to another c. The economic problem of scarcity a. is unique to a capitalist economy.
Opportunity cost is the a. cost incurred when one fails to take advantage of an opportunity.
Voluntary exchange occurs when a. both parties expect to gain something. Purchasing power of money a. refers to the amount of a good or service consumers can purchase with their income. All of the above are correct. In Figure 2-1, a. A partnership is characterized by a. large annual revenues.