An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is:
A. the cost of bait and any other monetary expenses.
B. zero, because the person doesn't have a job.
C. the cost of bait, any other monetary expenses, and the value of the individual's wages while he was working.
D. the cost of bait, any other monetary expenses, and the value of the best alternative use of the individual's time.
Answer: D
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What will be an ideal response?
In the Keynesian model, a build-up of unwanted inventories leads to
A) rising interest rates. B) falling unemployment. C) falling output. D) falling money wages.
A competitive price-taker market in long-run equilibrium is described as efficient because firms
a. produce at the low point on their average cost curve. b. produce where marginal cost yields a profit. c. earn no more than the cost of capital. d. are not profitable.
As price increases, firms in a perfectly competitive market find that it is:
A. beneficial to produce fewer units of output. B. more difficult to sell their product. C. easier to sell their product. D. beneficial to produce more units of output.