What is opportunity cost?
What will be an ideal response?
Opportunity cost refers to the highest-valued alternative that must be given up to engage in an activity. For example, the opportunity cost of taking this economics class is what you are giving up to take the class, which may be taking another class such as accounting or psychology, working extra hours at your job, or extra sleep (whichever is your highest-valued alternative).
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Refer to the above figure. Suppose the economy is in equilibrium at point A. If rational expectations exist, an increase in aggregate demand caused by an anticipated increase in the money supply will cause the economy to
A) stay at point A. B) move to point B. C) move to point C. D) move to point D.
Why do accountants and economists calculate a firm's cost and profit in different ways?
What will be an ideal response?
The factor of production that is always fixed in the short run is
a. the amount of raw materials b. the size of the physical plant c. the number of workers d. energy costs e. quantity of output
U.S. casinos serve about ________ people per year.
A. 5 million B. 76 million C. 250 million D. 1 million