The highest valued alternative option that must be given up in order to choose an action is called its
a. utility.
b. opportunity cost.
c. capital.
d. ceteris paribus
Answer: b. opportunity cost.
You might also like to view...
Mortgage-backed securities are similar to bonds in that the investor who buys one receives
A) dividend payments. B) federal insurance to cover the value of the security. C) regular interest payments. D) partial ownership of the company that issued the security.
Which of the following will tend to lower the ability of a union to increase the wages of its members?
a. strong competition from nonunion labor b. threat of a strike c. increased demand for union labor d. all of the above
In most cases, a monopolist practicing price discrimination will earn more economic profit.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 7.2 below to answer the question(s) that follow. 
Figure 7.2Refer to Figure 7.2. The marginal product of the first worker is ________ lawns moved.
A. 3 B. 4 C. 5 D. 11