The opportunity cost of an action:
a. can be objectively determined only by economists
b. is a subjective valuation that can only be determined by the individual who chooses the action.
c. can be determined by adding up the dollar costs incurred as a result of the action.
d. can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action.
b
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Jorge, a computer programmer, was laid off when his firm went out of business. He began to look for work, but was struck by a car and his hands and one leg were broken. He is unable to use the computer to seek jobs, or to go to interviews for jobs. It is now week 5 of 6 weeks in his cast. According to the current rules, Jorge will probably be classified as:
a. employed b. unemployed c. out of the labor force d. unemployable
In moving along a demand curve for good X, which of the following is NOT held constant?
A) the prices of substitute goods for good X B) the prices of complementary goods for good X C) incomes of consumers of good X D) the price of good X
Which of the following is a bank asset?
A. demand deposits B. savings account deposits C. certificates of deposit held by the public D. loans made to customers
According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is
A) $9.9 trillion. B) $8 trillion. C) $10.1 trillion. D) $9.8 trillion. E) $10.2 trillion.