Suppose you play a round of golf costing $75. The golf takes four hours to play. If you were not playing golf you could be working and earning $40 per hour. The opportunity cost of your golf game is:
a) $75.
b) $235.
c) $155.
d) $160.
Ans: b) $235.
You might also like to view...
The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
When the economy is producing at a quantity greater than its long-run aggregate supply:
A. it is pushing some of its resources to operate beyond capacity. B. the economy is experiencing greater economic growth. C. it causes a bubble to form in one of its major sectors. D. we are experiencing a recession.
Whenever there is a deficit in the current account, the capital account: a. will be negative
b. will be positive. c. will be zero. d. could be negative, positive, or zero.
In an economy with a population of 300 million persons, 130 million hold civilian jobs and 8 million are not working but are looking for jobs. The unemployment rate is
a. 6.2 percent. b. 8.6 percent. c. 2.7 percent. d. 9.4 percent. e. 5.8 percent.