Opportunity costs arise from

The profit maximizing combination of resources

A) usually involves more of each input hired than the cost minimizing combination of resources. B) usually involves less of each input hired than the cost minimizing combination of resources. C) usually involves hiring more of some resources and less of other resources than the cost minimizing combination of resources. D) is also the cost minimizing combination of resources.

Which of the following is more likely to be effective in increasing the growth rate of real GDP?

A) temporary cuts in income taxes B) permanent cuts in business taxes C) a one-time personal income tax rebate D) All cuts in taxes are equally likely to increase the growth rate of real GDP.