) mOulves a tradeoff between what is wanted and what is needed. icdai wHat is no
ID: 1128492 • Letter: #
Question
) mOulves a tradeoff between what is wanted and what is needed. icdai wHat is not needed shows combinations of two goods or services that are attainable with given resources. D) identifies the combination of two goods or services that should be produced. Opportunity cost is best defined as 4) A) a situation in which one individual cannot have an absolute advantage over another individual in the production of all goods. B) the amount of money that an individual is willing to pay to purchase a good that means a great deal to that persorn. the highest-valued alternative that is forgone when choosing among various alternatives. the amount of money lost by one individual in an exchange process so that another individual might gain. 5) 5) All of the following statements are true except: A) The theory of demand and supply is concerned with adjustments in relative prices. B) The relative price of a good can be calculated by multiplying its money price by a price index C) Relative prices are determined in markets. D) A relative price is an opportunity cost. hen are generally taken by people wit me effect" in the market for aspirin means that 6) ly taken by people with higher than average incomes. A aspincrease in the price of aspirin will cause headache sufferers to look for a lower priced B) an decrease in the price of a substitute good like acetaminophen will make aspirin takers fel a remedy. little poorer than they were before. n increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. If the price of an apple increases from 50¢ to 60c, the quantity demanded will decrease because of A) a change in income. C) the substitution effect only 7 B) the income effect onlyExplanation / Answer
4. Option C.
Explanation: Opportunity cost is the most valued alternative foregone while choosing among alternatives. For example, Instead of watching TV for 3 hours, I could have used that time to study economics and earn a higher grade in the exam. So, the opportunity cost of watching TV was the loss of good grades in economics.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.