Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis to choose between going to the concert and going out to dinner, the opportunity cost of going out to dinner should include:
A. only the cost of concert ticket.
B. neither the cost of the ticket nor the entertainment value of the concert.
C. only the entertainment value of the concert.
D. the cost of the ticket plus the entertainment value of the concert.
Answer: C
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Demand and quantity demanded are the same thing.
Answer the following statement true (T) or false (F)
From 1970 to 2007 households held ________ because ________
A) less money relative to income; people began using credit cards less often B) less money relative to income; people began using credit cards more often C) more money relative to income; people began using credit cards less often D) less money relative to income; the price level began to rise E) more money relative to income; people began using credit cards more often
International borrowing and lending may be interpreted as one form of
A) intertemporal trade. B) intermediate trade. C) trade in services. D) unrequited international transfers. E) aid to offset trade advantages.
When considering the interplay of the price and quantity effect of different tax levels, we realize that:
A. there is one tax level that maximizes tax revenues. B. tax revenues will continue to increase at all levels where the price effect outweighs the quantity effect. C. tax revenues will continue to decrease at all levels where the quantity effect outweighs the price effect. D. All of these statements are true.