What an economic decision maker must give up when choosing one economic activity over others is known as the
a. alternative cost
b. decision cost
c. foregone cost
d. opportunity cost
e. accounting cost
D
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Compared to the national debts of major European countries as a percentage of national incomes, the U.S. national debt
a. is the largest. b. is the smallest. c. is at the lower end. d. falls in the highest ten percent.
Which of the following is the most accurate statement about production possibilities?
a. An economy can produce only on the production possibilities frontier.
b. An economy can produce at any point inside or outside a production possibilities frontier.
c. An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.
d. An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.
Sellers gain a net benefit by producing units at a cost ______.
a. equal to the market price b. lower than the market price c. somewhat higher than the market price d. double the market price
Absent market imperfections, when firms ________ profits and households ________ utility Pareto optimality has been obtained.
A. maximize; maximize B. minimize; minimize C. maximize; minimize D. minimize; maximize