The opportunity cost of an action is always equal to:
a. the monetary expense incurred as a result of the action
b. the value of any alternative use of the time expended on the action.
c. the highest valued alternatives sacrificed as a result of the action.
d. the sum of the benefits received as a result of the action.
c
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What is the rationale behind a cap-and-trade emission allowance system?
A) It creates a market for externalities. B) It disciplines polluting firms by specifying the maximum amount of emissions allowed and gives them permits to pollute up to their allowance. C) It provides firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance. D) It raises revenue for the government through the sale of permits.
Which type of unemployment increases during a recession?
A) cyclical unemployment B) frictional unemployment C) structural unemployment D) the natural unemployment rate