A university offers a free shuttle service around campus. The opportunity cost of the shuttle service to the university is equal to:
a. zero, since it is free to students who want to ride
b. the wages paid to the shuttle drivers.
c. the wages paid to the shuttle drivers, plus the gasoline expenses.
d. the highest valued alternative use of the resources devoted to the shuttle program.
d
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"Fixed exchange rates are not even an option for most countries." Discuss
What will be an ideal response?
For some fisheries in the U.S., the state or federal government imposes "gear restrictions" that limit the size of boats, nets, or other equipment that may be used to harvest the fish in a given body of water
The purpose of the gear restrictions is to: A) prevent everyone from using the common property resource (fish). B) make it harder for other members of society to harvest the resource. This reduces the opportunity cost of the resource for other members of society, and the marginal social cost is closer to the private cost. C) increase the private cost of using the resource so that the private cost is closer to the marginal social cost. D) maintain traditional ways of harvesting fish, which is valuable for promoting tourism.