People are especially prone to undervaluing opportunity costs when
A. they are monetary.
B. they are nonmonetary, such as time.
C. All of these are true.
D. they involve obvious costs, like lost wages.
Answer: B
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In the long run, a firm should exit when:
A) price is less than average total cost. B) price is equal to average total cost. C) price is equal to marginal cost. D) price is more than marginal cost.
A person that is risk averse
A) exhibits decreasing marginal utility of wealth. B) exhibits increasing marginal utility of wealth. C) always engages in fair bets. D) loves lotteries.
Increasing marginal opportunity cost means that the production possibility curve is:
A. bowed out so that for every additional unit of one good given up, you get more and more units of the other good. B. bowed in so that for every additional unit of one good given up, you get more and more units of the other good. C. bowed out so that for every additional unit of a good given up, you get fewer and fewer units of the other good. D. bowed in so that for every additional unit of one good given up, you get fewer and fewer units of the other good.
Everyone, from the most to the least skilled to the most and least educated, can benefit from trade.
a. true b. false