Opportunity cost is
A) the intrinsic value of an economic good.
B) the total value of all the alternatives forsaken when a choice is made.
C) the value of the opportunity selected when a need is satisfied.
D) the value of the next highest—ranked alternative that must be sacrificed to obtain a want.
D) the value of the next highest—ranked alternative that must be sacrificed to obtain a want.
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The current account balance is equal to net exports ________ net interest ________ net transfers
A) plus; minus B) minus; minus C) minus; plus D) plus; plus E) multiplied by; multiplied by
If a conscientious manufacturer underestimates the true value of life, the manufacturer will likely fail to take all cost-justified precautions
Indicate whether the statement is true or false
Compared to the no-trade situation, when a country exports a good,
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic producers gain, domestic consumers lose, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic producers gain, but domestic consumers lose an equal amount.
The general message of the full disclosure principle is that
A. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one. B. producers should offer lifetime warranties for low quality products. C. information is costly to fake. D. information is symmetric.