Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
a. nothing, because he enjoys playing basketball more than studying.
b. the increase in skill he obtains from playing basketball for that hour.
c. the benefit to his grades from studying for an hour.
d. nothing, because he had a free pass into the sports complex to play basketball.
c. the benefit to his grades from studying for an hour.
Gomer’s opportunity cost is the benefit to his grades from studying for an hour.
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Indicate whether the statement is true or false
From the firm's perspective, is an accounting profit of zero a good result, a bad result, or merely a satisfactory result? Why? Is an economic profit of zero a good result, a bad result, or merely a satisfactory result? Why?
Classical economists perceive that
A. investors' expectations about returns on investment are unstable. B. large investment swings are responses to small changes in interest rates. C. the best way to cure unemployment is to start a war. D. the proper cure for unemployment is active fiscal policy.
Opportunity cost is:
A) zero for the use of a free combo meal offer. B) the dollar payment for a product. C) the benefit derived from a product. D) the value of the best alternative forgone in making any choice.