Arlene quits her $125,000-a-year job to take care of her ailing parents. What is the opportunity cost of her decision?
A) at least $125,000
B) It depends on the "going rate" for home-care providers.
C) the value she attributes to the satisfaction she receives from taking care of her parents
D) zero, since she will no longer be earning a salary
A
You might also like to view...
One way to invest in human capital is by
a. increasing your education. b. avoiding on-the-job training programs. c. doing nothing; it is impossible to improve your human capital. Human capital is solely determined by the abilities that you are born with. d. investing in physical capital.
Suppose there is an increase in government spending. To stabilize output, the Federal Reserve would
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
If you were a creditor you would prefer
A. deflation. B. disinflation. C. unanticipated inflation. D. anticipated inflation.
A firm will hire workers until the
A. average revenue from hiring an additional worker is zero. B. marginal revenue from hiring an additional worker falls below the marginal cost. C. marginal revenue from hiring an additional worker is maximized. D. marginal revenue from hiring an additional worker is zero.