What is meant by the term "opportunity cost"?
What will be an ideal response?
Opportunity cost is the highest-valued alternative that must be given up to engage in an activity.
You might also like to view...
Last year the CPI was 177.1 and this year the CPI is 180.9. What was the inflation rate between these two years?
What will be an ideal response?
Suppose the following two events occur in the market for elementary school teachers:
a. Overcrowded schools and education budget cuts have discouraged young college students from pursuing careers in teaching. b. With an increasing birth rate, the number of children entering the elementary school system is expected to increase significantly over the next ten years. What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events? A) The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate. B) The equilibrium quantity falls and the effect on the equilibrium wage of elementary school teachers is indeterminate. C) The equilibrium quantity falls and the equilibrium wage of elementary school teachers rises. D) The equilibrium quantity and the equilibrium wage of elementary school teachers fall.
The price elasticity of demand is
A) always positive, so there is no reason to consider the absolute value of the price elasticity of demand. B) always negative, but by convention, economists typically express the price elasticity of demand as an absolute value. C) always equal to -1, which by convention economists typically express as an absolute value, or 1. D) always equal to zero, so there is no reason to consider the absolute value of the price elasticity of demand.
If the price of one good increases, and as a result the demand for another good increases, the goods are
A. normal goods. B. substitutes. C. complements. D. inferior goods.