Refer to the diagram. At output level Q total variable cost is:

The study of how people choose among the alternatives available to them is the:

A) definition of economics. B) model of demand. C) theory of opportunity costs. D) method of distinguishing between microeconomics and macroeconomics.

In the medium run, an increase in inflation causes

A) an increase in the opportunity cost of holding money. B) a reduction in the opportunity cost of holding money. C) no change in the opportunity cost of holding money. D) individuals to switch from holding bonds to money and increase their real money balances.