Steve and Karen decide to watch a movie on Netflix using a promotion code so they do not need to pay for that movie. We know that
A) both bear the same opportunity cost because they are seeing the same thing.
B) both bear the same opportunity cost because the tickets have the same face value.
C) both bear an opportunity cost that depends on what each person is giving up to watch the movie.
D) neither bears an opportunity cost since neither needs to pay for the movie.
Answer: C
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If a firm decreases its plant size and finds that its long-run average costs have decreased, then
A) the firm should reduce its plant size even more. B) its labor is more productive in a smaller plant. C) its diseconomies of scale are less. D) the firm is now profitable.
A change in the required reserve ratio changes: a. the amount of actual reserves in the banking system
b. the amount of excess reserves in the banking system. c. the value of government securities held by the Fed. d. the level of insurance for banks who are members of the FDIC.
A tax system in which tax rates fall as incomes rise is
A. Flat. B. Regressive. C. Proportional. D. Progressive.
A common argument in favor of restricting trade
a. concerns the strategy of bargaining. b. is that efforts should be made to get new industries started. c. emphasizes the belief that all countries should play by the same rules. d. All of the above are correct.