The opportunity cost of an action is
a. objective and will be the same for all individuals.
b. a measure of the undesirable aspects involved in the action.
c. applicable only to choices involving material goods like commodities.
d. the highest valued alternative forgone as the result of choosing an option.
D
You might also like to view...
If a country's central bank wants to stimulate spending in the economy, it should:
A) increase the amount of assets banks should keep on reserve at all times. B) decrease taxes. C) lower interest rates. D) increase government spending.
A price floor that is set below the equilibrium price
A) causes suppliers to lower their prices. B) is binding. C) is non-binding. D) creates a shortage.
If Fred's marginal rate of substitution of salad for pizza equals five, then
A) he would give up five pizzas to get the next salad. B) he would give up five salads to get the next pizza. C) he will eat five times as much pizza as salad. D) he will eat five times as much salad as pizza.
A decline in the interest rate will lead to an increase in the price of capital, supply of capital remaining constant
a. True b. False Indicate whether the statement is true or false