Which of the following statements about the concept of opportunity cost is true?
A. The opportunity cost of a decision is the cost of all possible alternatives to the good produced.
B. Many decisions do not involve an opportunity cost.
C. If you have an economics final and an American history final tomorrow, the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam.
D. The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school.
C. If you have an economics final and an American history final tomorrow, the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam.
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Vicarious consumption refers to the notion that
a. individuals have a sense of obligation to preserve the environment for future generations b. people gain utility knowing that others receive gains from an environmental good c. individuals gain from directly consuming the services generated by an environmental resource d. natural resources have intrinsic value e. none of the above
Jane has noticed that she used to pay $2 for coffee and now she pays $2.50. Which of the following statements is TRUE?
A) The relative price of coffee has increased compared to tea. B) The money price of coffee has increased. C) The law of supply explains why the price of coffee has increased. D) Jane will stop consuming coffee.
The total costs of federal regulation
A) encompasses only explicit costs of satisfying regulatory demands. B) also includes the explicit costs associated with regulations issued by 50 different state governments. C) encompasses only opportunity costs of satisfying regulatory demands. D) encompasses both explicit and opportunity costs of satisfying regulatory demands..
If a corporation is sued and loses the lawsuit, its liability to pay
A. is imposed on all stockholders, personally. B. is imposed only on the corporate CEO and the board of directors. C. is limited to the assets held in the corporation’s name. D. is imposed on the bondholders of the corporation.