What is an opportunity cost? Give an example
What will be an ideal response?
An opportunity cost of something is the best thing you must give up to get it. For example, the cost of attending class might be the extra hour of sleep you lose, or the opportunity cost of buying a taco might be the soda you can no longer buy.
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Colombia produces coffee with less labor and land than any other country. This implies that it has:
a. a comparative advantage in coffee production. b. a perfectly elastic demand curve for coffee. c. a perfectly inelastic supply curve of coffee. d. an absolute advantage in coffee production.
Suppose that a worker can produce 100 units of output in 7 hours. In the 8th hour, he can produce 12 units of output. The worker can produce 112 units of output in 8 hours
a. True b. False Indicate whether the statement is true or false
What is the difference between tax cuts imposed on higher-income households compared with lower- and middle-income households? Discuss the implications for the multiplier and the effectiveness of the tax cuts for boosting GDP.
What will be an ideal response?
Which of the following typically purchases the most goods and services in the U.S. economy?
A. Businesses. B. Foreigners. C. Federal, state and local governments combined. D. Households.