What is the opportunity cost of producing capital goods such as a new road?
What will be an ideal response?
The opportunity cost of producing a new road can be measured by the next best alternative that could have been produced with the same resources.
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A consumer's willingness to trade one good for another can be expressed by the consumer's
A) indifference curve. B) marginal rate of substitution. C) Both A and B above. D) None of the above.
If Dana can paint his house faster than Luke, a professional house painter, then:
a. Dana has a comparative advantage in house painting. b. Dana has an absolute advantage in house painting. c. Luke has a comparative advantage in house painting. d. Luke has an absolute advantage in house painting. e. Dana should always paint his own house.
Macroeconomics is best described as a study of ____ and microeconomics as a study of ____.
A. financial markets, specific markets B. nations, individuals C. the stars, solar system D. abstract, concrete
Sticky prices can result from all of the following except:
a. market structure. b. long-term contracts between buyers and sellers. c. setting prices on the basis of costs when wages are sticky. d. expansionary monetary policy.