What is the term for giving up one choice for another opportunity?
a. choice cost
b. opportunity cost
c. direct cost
d. implicit cost
e. explicit cost
Ans: b. opportunity cost
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Assume that the MPC is 0.80 and investment rises by $50 million. How much additional saving will this generate in the second round of spending?
A. $10 million B. $40 million C. $50 million D. $62.5 million E. $250 million
If a firm currently sells a product at a point where the price elasticity of demand is 0.5, the firm needs to raise the price to maximize its total revenue.
Answer the following statement true (T) or false (F)
If a fast food restaurant gives senior citizens a 10% discount on food every day, this is an example of price discrimination. If they only give the discount on Tuesdays, it is not price discrimination.
Answer the following statement true (T) or false (F)
Wealth in the United States is:
A. distributed in a way that reduces the degree of income inequality. B. more unequally distributed than is income. C. less unequally distributed than is income. D. distributed in a way that has no effect on income inequality.