Opportunity cost is best defined as:
a. the sum of all alternatives given up when a choice is made.
b. the money spent once a choice is made.
c. the highest-valued alternative given up when a choice is made.
d. the difference between the cost price and the selling price of a good.
e. the cost of capital resources used in the production of additional capital.
c
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Bonds are a ________ liquid asset than other loans because they ________.
A. less; are standardized B. more; are standardized C. more; are guaranteed from default by the government D. less; are guaranteed from default by the government
Exhibit 4-3 Supply and demand curves
Initially the market shown in Exhibit 4-3 is in equilibrium at P2, Q2 (E2). Changes in market conditions result in a new equilibrium at P2, Q4 (E4). This change is stated as a(n):
A. increase in supply and an increase in demand. B. increase in supply and a decrease in demand. C. decrease in demand and a decrease in supply. D. increase in demand with supply held constant at S2.
When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day. In this price range, the price-elasticity coefficient (based on the midpoint formula) for candy bars is
What will be an ideal response?
When marginal utility is positive but decreasing, total utility is
A) decreasing. B) negative. C) increasing. D) zero.