Suppose you have three choices-go to a movie, read a book, or sleep. You choose to go to a movie. The opportunity cost of the movie is
A. the value of sleeping which you enjoy the least.
B. the value of the book not read.
C. the value of the concert that you didn't attend.
D. the value of the activity that you would have selected if you hadn't gone to the movie.
Answer: D
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A defining characteristic of an oligopoly is:
A. barriers to entry prevent newcomers to such an industry. B. firms in the industry know they are competing with a few large firms with market power. C. easy entry and exit prevent long-run profits from being possible. D. all firms sell a standardized product.
Behavioral economics
a. helps explain why economic decision makers maximize either utility or profit b. assumes that people behave "as if" they are maximizing something. c. is a subfield of economics, but one that is rejected by most economists d. explains why irrational behavior is better than typically "rational" behavior. e. points out that some human behavior is not consistent with any type of maximization
For any item (physical or financial) to be used as money, the item must be
a. a precious metal, such as gold or silver b. accepted as a medium of exchange c. divisible into smaller units by at least 10, otherwise most exchanges cannot occur, rendering useless the money form d. paper (fiat) backed by a precious metal e. portable
Which of the following is most likely to shift the demand curve for electricity to the left?
a. consumers becoming more energy conscious. b. an increase in income. c. a decrease in the price of electricity. d. an increase in the price of natural gas, a substitute source of energy.