The opportunity cost of an action: 1) can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action. 2) can be determined by adding up the bills incurred as a result of the action. 3) can be objectively determined only by economists. 4) is a subjective valuation that can be determined only by the individual who chooses the action.

The opportunity cost of an action: 1) can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action. 2) can be determined by adding up the bills incurred as a result of the action. 3) can be objectively determined only by economists. 4) is a subjective valuation that can be determined only by the individual who chooses the action.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 9RQ: Explain why individuals make Choices that are directly on the budget constraint, rather than inside...

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E D A B Refer to the diagram. Assume that the horizontal axis measures the quantity of a good and the vertical axis measures the marginal-benefit and marginal- cost of the good. Assuming that the good represented here has at least some positive benefits and costs, what can we conclude about the marginal- benefit and marginal-cost curves? Multiple Choice О There is no combination of curves shown that could represent the optimal allocation of resources to this good.
QUESTION 2 The assertion that "there is no free lunch" means that: OA. there are always trade- offs between economic O B. all production involves the use of scarce resources and thus the sacrifice of alternative goods OC. marginal analysis is used in economic O D.choices need not be made if behavior is rational goals reasoning
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A rational decision-maker takes an action only if the Select one: a. average benefit is greater than the average cost O b. marginal benefit is greater than both the average cost and the marginal cost Oc marginal benefit isgreater thanthe.marginal cost O d. marginal benefit is less than the marginal cost age ter4 ELAST CTYAND ITS APPLICATION TAutosaved.
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The data beloN shows how the marginal benefit of attending Durham Bulls baseball games varies for Joan with the number of games attended this season. Number of Games Attended This Season Marginal Benefit (5) 1 25 20 15 10 5. 5. The price of a ticket is $18 and is equal to the marginal cost of attending each game. Assuming that Joan behaves rationally, she will attend OA. 2 games this season, OB. 3 games this season. OC.5 games this season, O0.1 garme this season OE. 4 games this season.
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whith practical examples distinguish between sacale of preference and opportunity cost