The economic concept of "opportunity cost" is most closely associated with which of the following management considerations?
A) market structure
B) resource scarcity
C) product demand
D) technology
B
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Suppose pizzas are the only good and people have homothetic preferences. The supply of pizzas today is perfectly inelastic and determined solely by people's endowments. Which of the following would cause the interest rate to rise?
a. A 50% increase in pizza production, this year and throughout the future. b. A 50% increase in this year's pizza production that is not expected to affect future harvests. c. An expected 50% increase in future pizza production. d. A hurricane that permanently destroys 50% of all pizza parlors.
A government is most likely to use a reflationary policy:
a) In a recession b) In a boom c) When there is fast GDP growth d) When prices are increasing fast