Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2i) watch two half-hour TV sitcoms, (3) play pool, and (4) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information?
a. Jogging around town
b. Watching two half-hour TV sitcoms.
c. Playing pool.
d. The sum of watching two half-hour TV sitcoms, playing pool, and doing your laundry.
b
You might also like to view...
If forecasting errors are rational, then
A) people will always be error-prone. B) they will be random, and thus independent of previous errors. C) they will be independent of business firm production and price forecasts. D) A and C are both correct.
The number of Mexican pesos required to buy the same number of goods and services in Mexico as one U.S. dollar buys in the United States is a description of the ________ exchange rate
A) actual B) real C) purchasing power parity D) chain-weighted
The flu vaccination example in Section 1.1 of the textbook is an example of how policy makers may cope with
A) scarcity of medical treatment. B) scarcity of patients. C) scarcity of policy makers. D) answering the question of how to produce.
AA Appliances sells refrigerators. In 2015 it added $100,000 to its inventory. $10,000 of this addition was from used refrigerators, and the remaining $90,000 was from their purchases of newly manufactured refrigerators. How much of AA's inventory is included in 2015 GDP?
a. $0 b. $10,000 c. $90,000 d. $100,000