Suppose you have four choices--go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is
A) the value of the book not read.
B) the value of the television program not watched.
C) the value of the concert that you didn’t attend.
D) the value of the activity that you would have selected if you hadn’t gone to the movie.
D) the value of the activity that you would have selected if you hadn’t gone to the movie.
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The time it takes to formulate a policy is known as
A) inside lags. B) crowding out. C) outside lags. D) fiscal policy.
If price is set equal to marginal cost when marginal cost is below ATC, the firm will suffer a loss
Indicate whether the statement is true or false
If productivity growth in Japan exceeds productivity growth in the U.S., to the point that the resource cost in ALL Japanese industries is lower than in the U.S., then
A. there is no feasible way for the U.S. and Japan to continue to trade. B. mutually beneficial trade is possible. C. trade between the U.S. and Japan is possible, but only Japan will benefit from it. D. trade between the U.S. and Japan is possible, but only the U.S. will benefit from it.
How do you interpret the value of cross-price elasticity?
What will be an ideal response?