The opportunity cost of a choice is defined as the value of
a. the next best alternative that must be sacrificed.
b. all the alternatives that must be sacrificed.
c. the chosen option minus the value of the next best alternative.
d. the chosen option minus the value of all the alternatives.
a. the next best alternative that must be sacrificed.
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If we have information about workers' marginal products, then total and average product can be found by
A) summing the marginal values to find the total and multiplying it times the number of workers to get the average. B) dividing marginal costs by the number of workers. C) summing the marginal values to find the total and dividing it by the number of workers to get the average. D) multiplying the average marginal product times the number of workers.
Which of the following would create the most money?
(A) The initial deposit is $3,000 and the required reserve ratio is 10 percent. (B) The initial deposit is $7,500 and the required reserve ratio is 25 percent. (C) The initial deposit is $4,500 and the required reserve ratio is 15 percent. (D) The initial deposit is $6,500 and the required reserve ratio is 20 percent.
An increase in the effective tax rate on capital would cause the IS curve to
A. shift up and to the right. B. shift down and to the left. C. remain unchanged. D. remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
Total revenue minus total cost is equal to
A. net cost. B. profit. C. marginal revenue. D. the rate of return.