From a firm's viewpoint, opportunity cost is the
A) best alternative use customers can find for the firm's output.
B) cost the firm must pay for the factors of production it employs to attract them from their best alternative use.
C) accounting cost of resources.
D) price a firm can charge for its output.
E) cost of acquiring the opportunity to sell to its customers.
Ans: B) cost the firm must pay for the factors of production it employs to attract them from their best alternative use.
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What is the expected dollar rate of return on dollar deposits if today's exchange rate is $1.10 per euro, next year's expected exchange rate is $1.165 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%?
A) 10% B) 11% C) -1% D) 0% E) 15%
Marginal product is:
A. total product divided by the number of workers employed. B. the increase in total cost attributable to the employment of one more worker. C. the increase in total output attributable to the employment of one more worker. D. the increase in total revenue attributable to the employment of one more worker.
Refer to the graph below. Which curve shows a direct relationship between price and quantity?
A. A
B. B
C. C
D. D
The CPI of a country in the base year was 100 and it is 130 in the current year. This implies that the prices of final goods and services produced in the country have increased by ________ between the two years.
A) 30% B) 3% C) 10% D) 0.1%