Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?
a. Because sometimes the market does not function well.
b. Because opportunity costs are different for different goods.
c. Because there are trade-offs involved in any decision.
d. Because of existence of efficient markets.
a
Economics
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Generally, opportunity costs increase and the production possibilities frontier bows outward. Why?
A) Unemployment is inevitable. B) Resources are not equally useful in all activities. C) Technology is slow to change. D) Labor is scarcer than capital.
Economics
In July 2008, a British pound could buy $2. By October 2008, a pound could buy $1.55. Over the four months, the
A) pound depreciated against the dollar. B) the real exchange rate did not change. C) pound appreciated against the dollar. D) the U.S. inflation rate increased.
Economics