Opportunity cost is defined as
A) the value of the next-best alternative that must be sacrificed to attain a want.
B) the least-costly means to produce output.
C) the value of the output currently received by an individual or a corporation.
D) the return from a given unit of labor.
Answer: A
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The burden of a site value tax will be borne entirely by the site owner _____
a. because the demand for land is elastic b. when the site owner is forced to remit the tax c. because the supply of land is completely inelastic d. when the supply of land is unitary elastic
Nominal wages are assumed fixed in the short run because: a. workers have wages stated in their contracts
b. of minimum wage laws. c. workers are unaware of short-run changes in their real wages. d. all of the above are true. e. none of the above are true.
At potential real GDP:
a. there is zero unemployment. b. there is no seasonal unemployment. c. there is no frictional unemployment. d. unemployment is at its natural rate. e. cyclical unemployment equals approximately 5 percent.
When computing a price index, the base year is
A. the most recent year in which the inflation rate was close to zero. B. the earliest year for which data are available. C. the year that is chosen as the point of reference for comparison of prices with other years. D. the most recent year for which data are available.