The value of the best alternative foregone is the opportunity cost of making a decision.
Answer the following statement true (T) or false (F)
True
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In a business cycle, a period from trough to peak may be referred to as ________
A) a contraction B) an expansion C) a recurrence D) all of the above E) none of the above
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna can only set one price, what price should she set?
a. $100 b. $70 c. Any price higher than $100 d. Any price lower than $70
Recall the Application about the short-run and long-run elasticity of supply of coffee to answer the following question(s). Recall the Application. What is the reason identified in the Application regarding why the short-run elasticity of supply of coffee is more inelastic than in the long run?
A. It takes at least 3 years for a newly planted coffee bush to yield marketable beans. B. Coffee production is capital intensive, and the farmers cannot afford the additional capital. C. Fertilizers are expensive in countries that produce coffee. D. The government controls the supply of coffee in those countries.
Taxes, savings, and imports tend to magnify the effect of any spending change in the economy; that is, if investment spending initially increases, then spending will grow even more as taxes, savings, and imports increase, so the economic growth will
accelerate. Indicate whether the statement is true or false