Opportunity cost is defined as
A) the value of the next—best alternative that must be sacrificed to attain a want.
B) the least—cost means to produce output.
C) the value of the output currently received by an individual or a corporation.
D) the return from a given unit of labor.
A) the value of the next—best alternative that must be sacrificed to attain a want.
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One of the most obvious clues to the relative scarcity of a product is
A) the limited selection of colors. B) the quality of the product. C) the variations in available sizes. D) its current market price.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
For a major country with extensive capital flows, what is the effect of an increase in interest rates?
a. There will be an inflow of capital, a currency depreciation, and increased net exports. b. There will be an inflow of capital, a currency depreciation, and reduced net exports. c. There will be an outflow of capital, a currency depreciation, and increased net exports. d. There will be an inflow of capital, a currency appreciation, and reduced net exports.
The effect of a recession on a company like General Motors Corporation is such that
A) sales decline more sharply for General Motors as compared to firms that do not produce durable goods. B) profits fall less sharply as compared to firms that do not produce durable goods. C) the decline in sales is more short-lived as compared to firms that do not produce durable goods. D) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.