Opportunity cost is
A. the additional cost incurred from the consumption of one more unit of output.
B. the cost of production which cannot be recaptured.
C. the cost involved when choosing between alternatives.
D. the total cost incurred from the consumption of additional output.
Answer: C
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Three macroeconomic factors that affect the demand for money are:
A. capital, labor, and technology. B. the nominal interest rate, capital, and labor. C. globalization, skill-biased technological change, and labor mobility. D. the nominal interest rate, real income, and the price level.
A sharp rise in the real value of stock prices, which is independent of a change in the price level, would best be an example of ________.
A. a change in the degree of excess capacity B. a change in real value of consumer wealth C. the interest-rate effect D. the real-balances effect
Which of the following is true of welfare states?
A) Resources are not equally distributed in a welfare state. B) Resources are efficiently allocated in a welfare state. C) A welfare state entails a huge cost on the society. D) A welfare state usually has a regressive tax system.
In the long run, imports are paid for by
A) investment. B) exports. C) dollars. D) gold or other universally accepted monies.