The opportunity cost of constructing a new public highway is the:
A. Money cost of hiring contractors and construction workers for the new highway
B. Value of other goods and services that are sacrificed in order to construct the new highway
C. Expected cost of constructing the new highway in a future year
D. Value of shorter driving times and distances when the new highway is completed
Answer: B
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What will be an ideal response?
If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to
A) see whether it generates accurate predictions about the choices of business people. B) ask business people whether it is true or not. C) find out whether U.S. businesses are more profitable than European businesses. D) take a survey of people and see if they agree with this assumption.
The saving rate in the United States fell to nearly zero in the early 2000s. One of the contributing factors to this development was the
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Deregulation will cause the Phillips curve to shift to the right.
Answer the following statement true (T) or false (F)