You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not go to work where you could have earned $750. In terms of dollars, the opportunity cost of the vacation is
A) $2,000.
B) $750.
C) $2,750.
D) $1,250
C
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All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm's production process
Indicate whether the statement is true or false
Which of the following is NOT a condition for third degree price discrimination?
A) Monopoly power B) Different own price elasticities of demand C) Economies of scale D) Separate markets
Which of the following statements is correct?
a. If the buyer of a good gains, the seller must lose an equal amount. b. The value of goods is objective; it is equal to the cost of supplying the good. c. Opportunity costs will always be incurred when scarce resources are used to produce a good. d. Changes in incentives generally have no effect on human behavior.
Government programs that automatically shift the government budget toward a deficit during recessions and a surplus during recoveries are called
a. discretionary fiscal policy. b. automatic stabilizers. c. progressive taxation. d. price deflators.