Opportunity cost is
A. the financial cost of purchasing a good or services
B. the marginal benefit minus the marginal cost
C. the expected value of buying a good or service
D. the value of the opportunity that you give up when you choose one activity instead of another one
Ans: D. the value of the opportunity that you give up when you choose one activity instead of another one
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All of the following are examples of state regulations on banks except:
a. the Suffolk System b. the Safety Fund System c. required bond deposits with a state authority prior to chartering d. the Forstall System
Demand is said to be ____ when the quantity demanded is very responsive to changes in price
a. independent b. inelastic c. unit elastic d. elastic
In the long run, it is in the best interests of a member of a cartel to: a. decrease the price of its output
b. increase the level of its output. c. maintain the same quality of output. d. improve the quality of its output.
A capital intensive production process is one in which:
A. a lot of capital is hired relative to the total inputs needed to produce the good. B. total costs will be minimized if capital is the primary factor of production used. C. a part of the production process must be done by capital and cannot be substituted. D. highly specialized capital is needed to produce the good.