The opportunity cost of going to a movie is
a. the price of the movie
b. number of hours you spend watching the movie
c. expected gains you experience by watching the movie
d. the next best alternative that must be sacrificed in order to go to the movie
e. expected gains minus the expected cost of the movie
D
You might also like to view...
A draft system, whether in professional sports or the military, enables the people who are hiring to avoid paying their employees
A) a living wage. B) the true value of their labor. C) what others are willing to pay them. D) what they want to be paid.
Assume the economy is at point D and it moves to a hypothetical point E located midway between points A and D. Which of the following would have to happen for the economy to move from point D to point E?
a. The price level would have to increase.
b. The price level would have to decrease.
c. Aggregate expenditure would have to increase.
d. Aggregate expenditure would have to decrease.
Which of the following would cause the money supply in the United States to expand?
A. a decrease in reserve requirements B. an increase in the discount rate C. the sale of U.S. government bonds by a Federal Reserve bank D. an increase in the world supply of gold
Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. If fixed costs are zero and the firm engages in two-part pricing, the most profits the firm will earn is:
A. $50. B. $5. C. $10. D. $25.