What is an opportunity cost?
What will be an ideal response?
An opportunity cost is what you sacrifice to get something.
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Which statement most accurately captures the state of money today?
A) Money today includes currency, bank deposits and checks. B) Money today includes currency and checks but not bank deposits. C) Money today includes bank deposits and currency but not checks. D) Money today includes bank deposits and checks but not currency. E) Money today includes checks and credit cards.
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers is 6
Bill could increase his utility by: A) increasing Pepsi consumption and reducing hamburger consumption. B) increasing hamburger consumption and reducing Pepsi consumption. C) maintaining his current consumption choices. D) We do not have enough information to answer this question.
When economists say the demand for a product has increased, they mean the
a. demand curve has shifted to the right. b. price of the product has fallen, and consequently, consumers are buying more of it. c. cost of producing the product has risen. d. amount of the product that consumers are willing to purchase at various prices has decreased.
As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decline. b. the net inflow of capital from abroad will increase. c. the inflationary premium will rise, and the money rate of interest will decline. d. the inflationary premium will fall, and the money rate of interest will rise.