What accounts for specialization?
a. People specialize in the activity in which their opportunity costs are at a maximum.
b. People specialize in the activity in which their opportunity costs are lowest.
c. People do not specialize in any activity.
d. People specialize in the activity that pays the highest wage.
e. People specialize in the activity that they enjoy the most, no matter what the salary is.
b
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Stock is
A) bought in a secondary market and sold in a primary market. B) bought in a secondary market and sold back to the firm. C) initially purchased in a primary market and sold in a secondary market. D) none of these choices.
The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a Russian tea cake?
A) 2 1/2 cappuccinos B) 2/5 of a cappuccino C) $2.50 D) $1.00