If you discover that the opportunity cost of raising your economics grade is zero, you
A. are studying too hard and receiving a higher grade than is optimal for you.
B. must be on the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods.
C. must be inside the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods.
D. must be producing more of other goods than is optimal for you.
Answer: C
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An increase in expected inflation results in
A) lower nominal interest rates and higher bond prices. B) lower real interest rates and higher bond prices. C) higher real interest rates and lower bond prices. D) higher nominal interest rates and lower bond prices.
An activity that would not be included in GDP would be:
A. a sweater you knit for your roommate for her birthday. B. getting tomatoes from your garden and making salsa with them. C. paying a company forcleaning your house. D. None of these would be included in GDP.
Consider the game above. at the mixed strategy equilibrium, the probability that player 2 assigns on Z =
The specificfactors model is termed a "shortrun" model because:
a. labor cannot move from one activity to another. b. land resources can move from one activity to another . c. labor can move from one activity to another. d. land and capital cannot move from one activity to another .