Which of the following statements about the concept of opportunity cost is true?
A. The opportunity cost of a decision only includes monetary outlays.
B. The opportunity cost of a decision is the next best foregone alternative.
C. All decisions have zero opportunity cost.
D. The opportunity cost of a college education is measured by the payments for tuition and books.
B. The opportunity cost of a decision is the next best foregone alternative.
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Why do we have to pay a price for most of the goods we consume?
What will be an ideal response?
When potential GDP increases, is it necessarily the case that real GDP increases as well? Explain
What will be an ideal response?
An increase in the money supply would cause the FE line to
A) shift to the right. B) shift to the left. C) remain unchanged. D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
Demand-pull inflation is due to:
a. minimum wage laws. b. labor cost increases. c. excess total spending. d. tax increase.