When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the ________ of the option chosen
A) opportunity cost
B) comparative advantage
C) nonmonetary cost
D) absolute advantage
A
You might also like to view...
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) three B) nine C) ten D) eleven
In the simple accelerator theory an
A) increase in actual sales will always lead to an increase in investment. B) increase in actual output will not lead to an increase in expected sales. C) increase in actual sales will lead to an increase in replacement investment. D) increase in the size of the increase in actual sales will lead to an increase in next period's net investment.
We say that a countrycompletely specializes in production when it spends all of its resources producing:
A. a particular good. B. those goods it has an absolute advantage in producing. C. only what other countries need. D. what it can make more of than anyone else.
Today, in the United States, imports are about
A) 16 percent of GDP. B) 32 percent of GDP. C) 8 percent of GDP. D) 4 percent of GDP.