Angelina, age seven, decides to dress up like Princess Fiona for Halloween. What is the opportunity cost of her decision?
A. the cost of the costume
B. the fact that she can't dress up like Dora the Explorer, her second choice
C. zero, because seven-year-olds don't have opportunity costs
D. the cost of the Lady Gaga costume which she did not want
Answer: B
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Which of the following is not a reason for regulation of U.S. financial markets?
A) Protection of individual investors B) Disclosure of information about securities is the best way to safeguard investors C) Full disclosure broadens investor's participation in the financial markets D) The operation of financial markets requires government regulation if they are to be efficient in channeling funds from savers to borrowers.
A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production. B) that the trade-off between the 2 goods is not constant. C) changing technology. D) only 1 good is always being produced.
Along a backward-bending labor supply curve, the
a. income effect always dominates the substitution effect b. substitution effect always dominates the income effect c. substitution effect is always equal to the income effect d. substitution effect dominates the income effect at high wage rates e. substitution effect dominates the income effect at low wage rates
The amount of capital each laborer has to work with is the
a. labor-capital ratio b. capital-output ratio c. labor-output ratio d. capital-labor ratio e. capital deepening