Suppose you have three choices—go to a movie, read a book, or sleep. You choose to go to a movie. The opportunity cost of the movie is
A) the value of the book not read.
B) the value of sleeping which you enjoy the least.
C) the value of the concert that you didn't attend.
D) the value of the activity that you would have selected if you hadn't gone to the movie.
Answer: D
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Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the
A) demand curve for unskilled labor is vertical. B) demand curve for unskilled labor is downward-sloping. C) supply curve for unskilled labor is downward-sloping. D) supply curve for unskilled labor is horizontal. E) none of the above.
Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?
A. Growth in nominal GDP B. Decreases in the rate of unemployment C. Increases in real GDP per capita D. Increases in real GDP