The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a cappuccino?
A) $1.00 B) $2.50
C) 2/5 of a Russian tea cake D) 2 1/2 Russian tea cakes
D
You might also like to view...
In 1941 Henry Luce coined the term ______________________ to describe the magnitude of America's economic and military prowess.
Fill in the blank(s) with the appropriate word(s).
If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) government purchases. B) the money supply and a decrease in interest rates. C) taxes. D) oil prices.
If the cost were greater than the marginal benefit of a good:
A. consumers could increase their utility by buying less. B. social net benefit would be maximized. C. consumers could increase their utility by buying more. D. producers should increase production.
If the marginal propensity is 0.75, then a $100 increase in investment will result in a maximum increase in equilibrium real gross domestic product of
A) $40.00 B) $100.00 C) $133.33 D) $400.00 E) $500.00