Opportunity cost can best be defined as the
a. money cost of a good or service.
b. money cost plus interest on money borrowed to buy a good or service.
c. cost of the resources used to produce a good or service.
d. value of the best alternative forgone when the alternative at hand is chosen.
Answer: d. value of the best alternative forgone when the alternative at hand is chosen.
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Among its duties, the Federal Reserve ________.
A. collects taxes from the commercial banks B. is responsible for regulating and supervising the banks C. uses loans from the commercial banks to increase the money supply D. provides deposit insurance for commercial bank customers
If watermelons are normal goods, the demand for them will rise as the income of consumers rises
a. True b. False Indicate whether the statement is true or false
When the Fed unexpectedly increases the money supply,
a. real interest rates will tend to decline. b. the exchange rate value of the dollar will tend to appreciate. c. aggregate demand will tend to increase. d. all of the above are correct. e. both a and c are correct.
If the total variable cost curve for a firm is S-shaped, what is the shape of the total cost curve for that firm?
a. U-shaped
b. Flat.
c. Hill-shaped.
d. S-shaped.
e. There is not enough information.