Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:
A. the cost of parachute pants that MC Hammer would wear.
B. the savings from not purchasing red swimming trunks.
C. giving up the alternative of dressing like a lifeguard.
D. there is no opportunity cost because he attended the party either way.
C. giving up the alternative of dressing like a lifeguard.
You might also like to view...
Which of the following theories predicts that current consumption increases when a person expects an increase in future income?
A) the life-cycle theory of consumption B) the Keynesian theory of consumption C) the permanent income hypothesis D) all of the above
Refer to Figure 13-2. Ceteris paribus, an increase in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Refer to Scenario 7.2. Suppose that you receive an order for 60 earthquake detectors. How much labor will you use to minimize the cost of 60 earthquake detectors?
A) 1 B) 5 C) 10 D) 45 E) none of the above
A rise in the price level prompts an increase in the demand for credit. This is relevant to the __________ effect
A) international trade B) real balance C) aggregate demand D) interest rate E) b and c