Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court. What are examples of the opportunity costs of this decision?
What will be an ideal response?
The opportunity cost of an action is the value of the next best alternative that a person has to give up when making a choice. The opportunity cost of the pizza and soda is what you would give up by consuming these things, such an alternative food choice like a hamburger and a bottle of water could have been consumed if you did not consume the pizza and soda.
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A. Price increases and quantity is indeterminate. B. Quantity increases and price is indeterminate. C. Price decreases and quantity is indeterminate D. Quantity decreases and price is indeterminate.
In part, microeconomics is concerned with
A) how a business firm decides upon the amount it produces and the price it sets. B) changes in the economy's total output of goods and services over long periods of time. C) factors that explain changes in the unemployment rate over time. D) the Federal Reserve's policy decisions.
Advocates of a progressive income tax use arguments EXCEPT for which of the following?
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The Keynesian range of the aggregate supply curve applies when the economy is at or near full employment
a. True b. False Indicate whether the statement is true or false