Which of the following statements concerning opportunity costs is false?
a. Opportunity costs are only expressed in money terms.
b. Every choice involves opportunity costs.
c. Opportunity costs are the highest-valued alternatives that must be forgone when a choice is made.
d. The concept of opportunity cost is used to demonstrate scarcity.
e. Economists refer to the forgone benefits of the next-best alternative as opportunity costs.
a
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________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
A) Autarky B) Absolute advantage C) Comparative advantage D) Specialization
There is great concern over the idea that citizens should have to provide specific identification to be able to vote in elections. A study of the costs and benefits of implementing a voter identification program is an example of
A. positive economics. B. laissez-faire economics. C. normative economics. D. labor economics.
Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table
If Mr. Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds, the opportunity cost is A) 37 pounds of fish. B) 31 pounds of fish. C) 17 pounds of fish. D) 34 pounds of fruit. E) 90 pounds of fruit.
Refer to Figure 13-2. Ceteris paribus, an increase in workers and firms adjusting to having previously underestimated the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.