Opportunity cost is
A) the combined value of all the alternatives not selected.
B) the same thing as the money price of a good.
C) the value of the next best alternative which was given up.
D) based on the intrinsic value of the good itself.
C
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In a period of rapid, unexpected inflation, resources can be lost
A) when firms invest in research and development instead of forecasting inflation. B) when firms use resources to forecast inflation. C) because rapid inflation almost always turns into a hyperinflation. D) Both answers B and C are correct.
One problem with the utilitarian principle is that it ignores
A) increasing marginal costs. B) decreasing marginal benefits. C) the costs of making income transfers. D) poor people.
If the reserve requirement is 10 percent, and banks keep no excess reserves, an increase in an initial $300 into the banking system will cause an increase in total money of:
A. $3,000. B. $30,000. C. $300. D. $30.
Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80At 10 units of output in Table 21.2, the total fixed cost is
A. $54. B. $40. C. $44. D. $14.