The opportunity cost of an airplane flight:
a. differs across passengers only to the extent that each traveler pays a different airfare
b. is identical for all passengers and equal to the number of hours a particular flight takes.
c. differs across passengers to the extent that both airfares paid and the highest valued use of travel time vary.
d. is equal to the cost of a bus ticket, the next best form of alternative transportation to flying.
c
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Is the number of sellers in the market the only thing that is different in each of the four market types economists study?
What will be an ideal response?
When a monopolist sells positive levels of output, its demand curve:
A) lies below its marginal revenue curve. B) lies above its marginal revenue curve. C) and marginal revenue curve overlap D) is vertical while its marginal revenue curve is horizontal.
The impact of a change in taxes on income is likely to be less than the effect resulting from a change in government spending since ________
A) the federal government typically operates in a deficit situation B) exports and imports can only assume positive values, but net exports can be positive or negative C) changes in the supply of money will be necessary if government spending is increased D) changes in taxes exert an indirect impact on total spending through changes in consumption
Which of the following could cause a decrease in labor supply?
a. An increased preference for working in the labor market b. An increase in the number of two-family households c. An increased preference for enjoying leisure time d. A trend toward less schooling and toward earlier entrance into the labor market e. An increase in the retirement age