Angelina, age seven, decides to dress up like Princess Fiona for Halloween. What is the opportunity cost of her decision?
A) the cost of the costume
B) zero, because seven-year-olds don't have opportunity costs
C) the fact that she can't dress up like Dora the Explorer, her second choice
D) the cost of the Lady Gaga costume which she did not want
C
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Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?
What will be an ideal response?
An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.
Frequent-guest rates offered by hotel chains are an attempt to
a. decrease competitors' access to distribution channels. b. develop a cost advantage independent of scale. c. increase customers' switching costs. d. overcome the perishability of the hotel "product."
The change in total welfare from a 10% increase in price will depend only on the elasticity of demand
Indicate whether the statement is true or false