Ronnie waits one hour in queue to buy a ticket to a rock concert. The opportunity cost of buying the $28 ticket:
a. is Ronnie's best alternative use of the sum of $28 spent on the ticket.
b. is Ronnie's best alternative use of the one hour it took to wait in queue.
c. is the revenue of $28 earned by the ticket agent.
d. is Ronnie's best alternative use of both $28 and the one hour spent in the queue.
e. cannot be measured because there is no opportunity cost associated with consumption.
d
You might also like to view...
A monopolistic firm is a:
a. price taker that faces the market supply curve. b. price taker that faces the market demand curve. c. price maker that faces the market supply curve. d. price maker that faces the market demand curve.
Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher. This can be portrayed as: a. an inward shift of the production possibilities curve
b. an outward shift of the production possibilities curve. c. a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve. d. a movement from a point on the production possibilities curve to a point inside the production possibilities curve.
Suppose a permanent technological improvement raises labor's marginal productivity. Whether or not workers own capital, we can conclude that
a. the wage rate will rise. b. employment will fall. c. the supply of labor will rise. d. the demand for labor will fall.
In the U.S. taxes:
a. are higher as a share of GDP than in France b. rely more on sales taxes than on income taxes c. have higher shares of social security contribution than in Europe d. none of the above