Which of the following statements about the concept of opportunity cost is true?
A. The opportunity cost of a decision is the cost of all possible alternatives to the good produced.
B. Many decisions do not involve an opportunity cost.
C. If you have an economics final and an American history final tomorrow, the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam.
D. The opportunity cost of a college education at a school where you have to drive 100 miles per week is the cost and maintenance of owning an automobile to drive to and from school.
C. If you have an economics final and an American history final tomorrow, the opportunity cost of studying five hours for your economics exam is the five hours you cannot study for your history exam.
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Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yield on thirty-year U.S. Treasury bonds is 10%
You would be indifferent between buying a thirty-year Treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield of A) 6.5%. B) 7.0%. C) 9.5%. D) 10.0%.
Ceteris paribus, an increase in the U.S. demand for Greek goods in Figure 36.1 will
A. Result in a movement from M to R on the supply curve for dollars. B. Result in a movement from M to N on the demand curve for dollars. C. Make U.S. goods more expensive to Greek residents. D. Increase the dollar price of euros above $2 = 1 euro.
Define the following terms and explain their importance to the study of macroeconomics. a. the relationship between interest rates and velocity b. lags in stabilization policy c. rules versus discretion
What will be an ideal response?
For a family with disposal income less than autonomous consumption
A. the APC is greater than 1. B. induced consumption is positive. C. the APS is very small but positive. D. in the long run credit cards are used to make up difference.