Which of the following does not illustrate opportunity cost?
a. If I study, I must give up going to the football game.
b. If I buy a computer, I must do without a 35" television.
c. More consumer spending now means more spending in the future.
d. If I spend more on clothes, I must spend less on food.
c
You might also like to view...
An increase in the real interest rate outside of the United States will ________ the demand for the dollar and ________ the demand for foreign financial assets
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
A theory suggesting that price stickiness leads to sluggish short-run adjustment of the price level to variations in aggregate demand is known as
A) new Keynesian flexible-price business cycles. B) new Keynesian inflation dynamics. C) real-business-cycle fixed-price business cycles. D) real-business-cycle inflation dynamics.
One difference between moral hazard and adverse selection is
a. ?Adverse selection is when you choose the wrong answer on a test b. ?Moral hazard has to do with unobservable characteristics of individuals c. ?Adverse selection is individuals change their behaviors because of a contract d. ?Moral hazard has to do with unobservable actions of individuals
Trinh quits his $80,000-a-year job to become a full-time volunteer at a museum. What is the opportunity cost of his decision?
A) 0 since he will no longer be earning a salary B) depends on the "going rate" of museum employees C) at least $80,000 D) the value he attributes to the joy of working at a museum