Podcast
Questions and Answers
Timber production does not involve any opportunity cost.
Timber production does not involve any opportunity cost.
False (B)
In a competitive market, the prices of land and labor reflect their opportunity costs.
In a competitive market, the prices of land and labor reflect their opportunity costs.
True (A)
Land, labor, and capital cannot be substituted in timber production.
Land, labor, and capital cannot be substituted in timber production.
False (B)
The inputs in timber production always follow the law of increasing returns.
The inputs in timber production always follow the law of increasing returns.
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Market failure occurs when resources are not allocated efficiently in a free market.
Market failure occurs when resources are not allocated efficiently in a free market.
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Policy failure is rare as governments always make decisions for the benefit of everyone.
Policy failure is rare as governments always make decisions for the benefit of everyone.
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