The opportunity cost of any good or service is the
a. actual dollar cost of doing or making it.
b. highest price that a seller can get for the item.
c. value of the next best alternative.
d. cost associated with a value judgment.
e. cost of producing the good or service.
c
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Which of the following would not be used by firms to deter shirking?
A) requiring employees to post a bond B) offering a bonus after five years of service C) paying more than the market wage D) paying less than the market wage
Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. What is the slope of this budget constraint?
a. -0.75 b. -1.00 c. -1.25 d. -2.25
Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the total variable cost of producing one unit of output is A) $16. B) $100. C) $120. D) $220.
Innovation is another word for invention.
Answer the following statement true (T) or false (F)