Just before class, Jim tells Stuart, "Stuart, you shouldn't skip class today because you have paid tuition to enroll in the class." Stuart ignores Jim's advice, and instead makes the decision of whether to attend based on the importance to his grade that he feels he'd be missing that day in class relative to his value of the extra time he could have to finish the video game he is playing. To an
economist, Stuart is:
a. using marginal analysis. b. ignoring the total value of attending class.
c. ignoring the concept of opportunity cost. d. irresponsible.
a
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The full employment level of real GDP can be represented on an aggregate supply and demand diagram as a(n):
a. vertical line. b. upward-sloping line. c. horizontal line. d. downward-sloping line.
In 2001, Costa Rican real GDP grew by 5 percent, well above the 2.5 percent trend line of its long-run annual average economic growth rate. In all probability, Costa Rica was in its ________ phase of the business cycle
a. recession b. recovery c. downturn d. prosperity e. trough
Total revenue
a. can be calculated directly from the demand curve. b. can be calculated directly from the average revenue curve. c. is found by multiplying price times quantity. d. All of the above are correct.
If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good
a. True b. False Indicate whether the statement is true or false