"Dad said he'd pay for my education whether I go to State or to Ivy College. So I chose Ivy College, even though it'll cost him $15,000 more in tuition each year!" Pick the correct statement:
A) Her opportunity cost is $15,000 each year.
B) Her opportunity cost is the satisfaction she would have experienced at State.
C) Whether she realizes it or not, her opportunity cost is infinite, just like her dad's love is infinite.
D) She has no opportunity cost, because her dad will pay for her education.
B
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According to the figure above, if there is no income tax, the equilibrium real wage rate is ________ and the equilibrium hours of labor are ________
A) $20; 200 billion B) $30; 250 billion C) $30; 200 billion D) $35; 200 billion E) The equilibrium is not shown.
For choice sets emerging from "exogenous" income, the budget line will shift parallel whenever both prices change by the same percentage.
Answer the following statement true (T) or false (F)
Economic profit is another name for accounting profit
a. True b. False
The Federal Reserve can:
A. simultaneously set independent money supply and nominal interest rate targets. B. only target the money supply, not the nominal interest rate. C. only set a money supply target that is consistent with a nominal interest rate target, and vice versa. D. only target the nominal interest rate, not the money supply.