Gwen’s decision to buy a new television instead of a bicycle for the same price
A. means that opportunity cost is zero since both cost the same amount.
B. would not have involved trade-off and opportunity cost if Gwen had decided to put the money in a bank CD instead.
C. would not imply a trade-off because of scarcity if Gwen were a multimillionaire.
D. means that the opportunity cost to Gwen is the bicycle that she has given up.
Answer: D
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In Figure 11.3, the multiplier effect resulting from a change in investment spending is represented as the distance between points
A) a0 and a1. B) y0 and y1. C) a1 and y1. D) C0 and C1.
The U.N.'s Millennium Poverty Goal is to
A. Keep the number of people in poverty at a constant level. B. Cut the percentage of people in extreme poverty in half worldwide. C. Reduce the percentage of people in severe poverty in the poorest nations. D. Cut the absolute number of people in extreme poverty in half worldwide.
If the demand for cigarettes is highly inelastic, this indicates that:
A. higher cigarette prices will increase the demand for cigarettes. B. the price elasticity coefficient of cigarettes exceeds 1. C. the price elasticity coefficient of cigarettes equals 1. D. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.
Refer to the below table. What will be the economic profit or loss for this monopolistic ally competitive firm at the profit-maximizing level of output?
Answer the question based on the demand and cost schedules for a monopolistic ally competitive firm given in the table below.
A. -$15
B. +$10
C. +$20
D. +$28