Opportunity cost:
a. has no relationship to the various alternatives that must be given up when a choice is made in the context of scarcity.
b. represents the worst alternative sacrificed for a chosen alternative.
c. represents all alternatives not chosen.
d. represents the best alternative sacrificed for a chosen alternative.
d
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Refer to the figure above. Social surplus can be increased by ________
A) increasing output above 13 million units B) reducing output below 13 million units C) increasing the price above $22 D) charging a price of $22
Suppose that a five-year Treasury bond pays 2.5 percent and a five-year corporate bond pays 8.5 percent, then what is the interest rate spread on this particular corporate bond?
A. 5 percent B. 6 percent C. 7.5 percent D. 9.0 percent
During times of recession, the labor force participation rate typically:
A. rises, as more incomes per household are needed to make ends meet. B. falls, as more people cannot find work, they stay in jobs that aren't a good fit. C. falls, as more people give up and stop looking for work. D. rises, as more people need work.
Everyone, from the most to the least skilled to the most and least educated, can benefit from trade.
a. true b. false