Opportunity cost is defined
a. only in terms of money spent
b. as the value of all alternatives not chosen
c. as the value of the best alternative not chosen
d. as the difference between the benefits from a choice and the benefits from the next best alternative
e. as the difference between the benefits from a choice and the costs of that choice
C
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If an assumption is made that a society is operating on its production possibilities curve, an outward shift of the curve implies
A. economic growth has occurred. B. the society is making more efficient use of its available resources. C. consumer demand has increased. D. the present value of capital resources has increased.
The following payoff matrix shows the outcomes for the United States and Russia from relying on conventional weapons versus atomic weapons in a military conflict. The percentages refer to the fraction of the population that would die.
The Nash equilibrium outcome of this game is for:
A. both countries to have conventional weapons. B. both countries to have atomic weapons. C. the U.S. to have atomic weapons and Russia to have conventional weapons. D. Russia to have atomic weapons and the U.S. to have conventional weapons.
The amount of revenues that sellers actually receive over and above the minimum acceptable amount that they are willing to receive for selling a product is called
A. production costs. B. producers' supply. C. consumer surplus. D. producer surplus.
If the interest rate on a bond is above the equilibrium interest rate, there is an excess ________ for bonds and the bond price will ________
A) demand; rise B) demand; fall C) supply; rise D) supply; fall