The value of the next best alternative defines ___________________.
Fill in the blank(s) with the appropriate word(s).
opportunity cost
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Rational ignorance would imply that it is in a voter’s best individual interest to ______.
a. spend time informing others about candidates and their positions b. be fully informed about candidates and their positions c. learn only the basics about candidates and their positions d. prevent others from learning about candidates and their positions
“Compensating wage differentials will attract U.S. workers even to otherwise undesirable work.” Explain
What will be an ideal response?
Refer to the graph below. All data are for the short run. If the product price is P2, the firm will:
A. Close down to avoid a loss
B. Produce Q2 units and make an economic profit
C. Produce Q5 units and break even
D. Produce Q2 units and suffer a loss
Which of the following is a characteristic of economic rent?
A. It equals economic profit minus accounting profit. B. It can never be negative. C. It can be positive, zero, or negative. D. It is driven towards zero by free entry.