The extra cost associated with undertaking an activity is called
A) net loss.
B) marginal cost.
C) opportunity cost.
D) foregone cost.
Answer: B
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Which of the following statements is an explanation for the law of increasing opportunity costs?
A. In any economy, the state of technology is changing and resources are variable. B. Many economic resources are better at producing one product rather than another. C. The economy is employing all of its available resources. D. The economy is achieving productive efficiency by producing goods at the least cost.
If the fraction of the economy's nominal GDP held by the public in the form of money is 20 percent, income velocity in the economy is
A) 5. B) 80 percent. C) 0.20. D) 20.
Environmental quality is
A. a public good. B. best improved through government’s prohibiting externalities. C. maximized when costs of pollution are external. D. minimized when optimal levels of pollution are produced.
If the Consumer Price Index (CPI) had a value of 128 in 2007, this means that during the period between the base year and 2007:
A. All prices increased by 28 percent. B. All prices increased by an average of 1.28 percent. C. Prices of goods and services that the typical consumer buys increased by an average of 28 percent. D. Prices of goods and services that the typical consumer buys increased by an average of 128 percent.