The opportunity cost of an action:
a. is equal to the marginal cost of an action
b. is equal to explicit cost
c. is equal to the cost of the next best alternative forgone
d. is the total cost of an action
c
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A producer's minimum acceptable price for a particular unit of a good
A. will, for most units produced, equal the maximum that consumers are willing to pay for the good. B. is the same for all units of the good. C. must cover the wages, rent, and interest payments necessary to produce the good but need not include profit. D. equals the marginal cost of producing that particular unit.
If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year, the sacrifice ratio is
a. 5/2. b. 3/2. c. 2/3. d. 2/5.
An increase in the supply of bonds leads to an increase in aggregate demand.
a. true b. false
The best method to reduce pollution is
A. to never start polluting. B. dependent upon the quality of government bureaucrats and the level of greed in the society. C. to establish private property rights. D. dependent upon the characteristics of the resources and the transaction costs.