Which of the following is true regarding opportunity cost?
a. Opportunity cost of engaging in some activity, such as attending opera, will be same for different people.
b. Opportunity cost has nothing to do with scarcity and time.
c. Opportunity cost may vary with circumstances.
d. Opportunity cost of the chosen item is the value of all the alternatives that are foregone.
c
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The U.S. Postal Service uses Ramsey pricing
Indicate whether the statement is true or false
Which of the following is one of the main reasons why China has recently received large amounts of foreign direct investment?
a. The prospect that multinational firms have of selling to the massive Chinese market b. The lack of environmental standards under the communist government of China c. The prospect of using forced child labor for cheaper production in this country d. The relative strength of the Chinese currency, which makes any investment there worthwhile e. The advanced southeast Asian highway system, which makes transportation extremely efficient
If a U.S. importer has to write a $200 check to cover a 20,000 yen purchase from Japan, the exchange rate is
A. 200 yen to a dollar. B. 100 yen to a dollar. C. 20 yen to a dollar. D. 10 yen to a dollar.
Which of the following might be considered to be a characteristic of a planned economy?
What will be an ideal response?