Opportunity cost can be best defined as
A. all sunk costs.
B. the value of the best alternative given up when making a choice.
C. the explicit cost of an activity.
D. the cost of making one additional unit.
B. the value of the best alternative given up when making a choice.
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In 2003, the Bush administration revised the tax bill to include provisions to
A) increase taxes on capital gains. B) delay tax increases from the 2001 bill. C) decrease the child tax credit. D) lower taxes on dividends.
If a monopolist is producing at the profit-maximizing level of output, what price will it charge?
a. The price given by the marginal-revenue curve at that level of output. b. The price given by the marginal-cost curve at that level of output. c. The price given by the average-cost curve at that level of output. d. The price given by the average-revenue curve at that level of output. e. The price given by the total revenue curve at that level of output.
On average, over the last 50 years or so world trade has
a) increased faster than world output b) been primarily concentrated in agriculture c) been dominated by Middle East oil exports d) declined as nations closed their borders to imports e) been conducted almost exclusively over the internet
There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
A. equity. B. economic growth. C. efficiency. D. economic stability.