Opportunity cost is
A. the additional cost of producing an additional unit of output.
B. that which we forgo, or give up, when we make a choice or a decision.
C. the additional cost of buying an additional unit of a product.
D. a cost that cannot be avoided, regardless of what is done in the future.
Answer: B
You might also like to view...
Diseconomies of scale are pictured on a graph by the upward-sloping portion of the
a. marginal product curve b. short-run marginal cost curve c. long-run marginal cost curve d. short-run average cost curve e. long-run average cost curve
In a situation in which internal costs differ from social costs, we say that there exists a(n)
A) welfare loss. B) welfare benefit. C) internality. D) externality.
The social interest theory of regulation asserts that regulation
A) seeks an efficient use of resources. B) is aimed at keeping prices as low as possible. C) helps firms maximize economic profit. D) of a natural monopoly must be done using rate of return regulation. E) does not work for society as well as would allowing the firms freedom from regulation.
Which of the following is NOT included in the measure of M1?
A) NOW accounts B) demand deposits C) currency D) savings deposits