The term opportunity cost suggests that
a. in any exchange situation where one person gains, someone else must lose
b. not all individuals make the most of life's opportunities
c. executives do not always recognize opportunities for profit as quickly as they should
d. the only factor that is important in decision making is cost
e. because goods are scarce, in order to get some good you must give up some other good in return
E
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The benefit from an additional unit of a good or service that society receives from the consumption of that good or service is the
A) marginal private benefit. B) marginal external benefit. C) marginal social benefit. D) opportunity cost.
Refer to Figure 9-2. The loss in domestic consumer surplus as a result of the tariff is equal to the area
A) C + D + E + F. B) B + D + E + F. C) D + E + F. D) B.