Asked by
Miguel Ramirez-Student
on Oct 13, 2024
Verified
Which of the following demonstrates opportunity cost?
A) With a new strain of wheat,the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming.
B) A tax cut increases people's purchases of consumer goods and decreases state expenditures on education.
C) The ravages of World War II reduced Japan's ability to produce goods.
D) Flora gets a 10% raise and increases her expenditures on movies.
Opportunity Cost
The toll taken for not picking the second highest preference when decisions are formulated.
Tax Cut
A reduction in the amount of taxes imposed by the government, which can affect individuals, corporations, or specific sectors.
State Expenditures
The total spending by state governments on various public services, infrastructure, education, and welfare programs.
- Acquire knowledge about the idea of opportunity cost and its application in economic decision processes.
Verified Answer
AA
Learning Objectives
- Acquire knowledge about the idea of opportunity cost and its application in economic decision processes.