Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of baseball cards. The opportunity cost to Tommy of an extra packet of baseball cards is
A. one video game rental.
B. two video game rentals.
C. the cost of the baseball cards.
D. he does not incur an opportunity cost.
B. two video game rentals.
You might also like to view...
In the Keynesian model, money is
A) neutral in both the short run and the long run. B) neutral in neither the short run nor the long run. C) neutral in the short run, but not in the long run. D) neutral in the long run, but not in the short run.
Funds that earn a fixed rate of interest and must be held for a stipulated period of time are known as
a. check able deposits. b. time deposits. c. savings deposits. d. money market funds.
In long-run equilibrium under perfect competition,
a. the firm and the industry will have the same cost curves. b. only a very few firms will be earning economic profits. c. the demand curves facing individual firms will fall to the level of minimum AC. d. individual firms will tend to increase their outputs.
If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is:
A. 2. B. 5. C. 8. D. 10.