"The value of the next best alternative" defines
A. the Law of Increasing Costs.
B. the economic problem.
C. allocative efficiency.
D. opportunity cost.
D. opportunity cost.
You might also like to view...
Helping the poor is not necessarily the same thing as promoting greater equality
a. True b. False
Which of the following is a barrier to entry?
a. Zoning laws preventing the establishment of new businesses in a certain area. b. The cost of buying a building in which to establish a new business. c. A sales-tax law. d. Inspection requirements for agricultural products.
If we focus on the banking system and assume no change in the public's currency holdings, a loss of reserves by any one bank must:
A. result in a multiple loss to the banking system. B. equal the loss of reserves by the entire system. C. be equal to the net loss of reserves for the banking system. D. result in no change in reserves for the banking system.
John and Mary work eight hours at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario
A) Mary has the absolute advantage in decorating wedding cakes. B) John has the absolute advantage in decorating wedding cakes. C) Mary has the comparative advantage in decorating wedding cakes. D) John has the comparative advantage in decorating ice-cream cakes.