The opportunity cost of an activity is
a. zero if you choose the activity voluntarily
b. the amount of money spent on the activity
c. the value of the best alternative not chosen
d. the sum of benefits from all of the sacrificed alternatives
e. the difference between the benefits and the costs of that activity
C
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Which of the following issues prominent in the presidential election of 2012 shifts the aggregate demand curve rightward?
A) raising taxes on the rich B) increasing Medicare, Medicaid, and Social Security payments C) loosening immigration policies D) allowing more oil drilling on Federal lands
Which of the following is included in GDP?
a. the value of illegally produced goods b. the value of housework by a stay-at-home dad c. the value of volunteer work done at a local homeless shelter d. the cost of government-provided social services
Which of the following expressions represents a cross-price elasticity of demand?
a. percentage change in quantity demanded of bread divided by percentage change in quantity supplied of bread b. percentage change in quantity demanded of bread divided by percentage change in price of butter c. percentage change in price of bread divided by percentage change in quantity demanded of bread d. percentage change in quantity demanded of bread divided by percentage change in income
John Maynard Keynes attacked the classical economic theory in his book The General Theory of Employment, Interest and Money, published in 1936. Summarize Keynes’ criticisms and explain why the timing of the book is so significant.
What will be an ideal response?