The opportunity cost of going to an outdoor music festival is
A) the value of the time spent at the festival.
B) zero because there are no overhead costs for an outdoor festival.
C) equal to the highest value of an alternative use of the time and money spent on the festival.
D) the enjoyment you receive from going to the festival.
E) the cost of the festival ticket only.
C
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Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Joe suggests that they specialize and trade. He would produces only salads and Liz would produce only smoothies
Then, Joe says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie. Liz should A) accept Joe's offer since she will gain 4 smoothies and 4 salads. B) accept Joe's offer as she will be as well off as with no trade. C) not accept Joe's offer as the price he offers is too low for her to gain from trade. D) not accept Joe's offer since she would lose 2 smoothies and 2 salads. E) accept Joe's offer since she will gain 4 salads.
Risk is:
A. when the costs or benefits of an event or choice are uncertain. B. why the changing value of money is such a challenge. C. to always be avoided, at any cost. D. None of these statements is true.
If the marginal propensity to consume (MPC) is 0.75 and if policy makers wish to increase real GDP by $300 million to fight a recession, then by how much would taxes have to change?
a. -$30 million b. -$50 million c. -100 million d. -300 million
The balance of payments is an accounting statement that shows, between one nation and the rest of the world, the
a. total values of goods, services, and payments flows. b. value of payments flows only. c. value of goods and services flows only. d. value of international investments flows only.