Which of the following is correct concerning opportunity cost?
a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway.
b. To compute opportunity costs, you should subtract benefits from costs.
c. Opportunity costs and the idea of trade-offs are not closely related.
d. Rational people should compare various options without considering opportunity costs.
a
You might also like to view...
The Federal Reserve can:
A. only set a money supply target that is consistent with a nominal interest rate target, and vice versa. B. only target the nominal interest rate, not the money supply. C. simultaneously set independent money supply and nominal interest rate targets. D. only target the money supply, not the nominal interest rate.
Refer to Table 15-1. What is the marginal revenue from the sale of the 12th unit?
A) $75 B) $50 C) $20 D) -$5
After the repeal of Regulation Q, a problem for savings-and-loan associations (S&Ls) was that most of their assets were at __________ interest rates while their deposits were at __________ interest rates
A) low; low B) low; high C) high; low D) high; high
When an economy is experiencing a negative output gap, it means that the:
A. actual output is less than their potential output. B. actual output is more than their potential output. C. price level is rising. D. price level is falling.