Explain the economic concept of opportunity cost
What will be an ideal response?
The opportunity cost of something is the best alternative that we give up when we make a choice or a decision.
Economics
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For this question, assume the Marshal-Lerner condition holds. Which of the following would occur as a result of an increase in the real exchange rate?
A) an improvement of the trade balance B) a reduction in the quantity of imports C) an increase in domestic output D) all of the above E) none of the above
Economics
GDP is not a perfect measure of well-being because
A) the value of leisure is included in GDP. B) GDP is not adjusted for pollution. C) GDP is adjusted for changes in crime rates. D) GDP is adjusted for increases in drug addiction.
Economics