Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Sam tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?

The principle that the cost of something is equal to what is sacrificed to get it is known as the

A) reality principle. B) marginal principle. C) principle of opportunity cost. D) principle of diminishing returns.

Which of the following actions could be undertaken if the government wants to reduce an inflationary gap?

A) Increase taxes and reduce government spending. B) Reduce taxes and increase government spending. C) Increase taxes and increase government spending. D) Reduce taxes and reduce government spending.