The opportunity cost of a decision is the
A) value of the best alternative not chosen.
B) value of all the alternatives not chosen.
C) cost of making the wrong choice.
D) cost incurred by others who are unhappy with your decision.
Answer: A
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Which of the following statements regarding a price-taking firm is correct?
A) Demand = average revenue > marginal revenue. B) Demand = marginal revenue > average revenue. C) Demand = price = average revenue = marginal revenue. D) Demand = price > average revenue > marginal revenue.
Which of the following is the best example of a decreasing-cost industry?
A) the health care industry B) the personal computer industry C) the college-education industry D) the oil industry
The reason why inflation reduces the value of the multiplier is that part of the change in demand is
a. absorbed by price changes. b. saved rather than spent. c. matched by changes in supply. d. matched by changes in income.
If the nominal interest rate is 8.3% and the inflation rate is 4.4%, what is the real interest rate?