4. Opportunity cost is
a. all of the alternatives we have in making a decision
b. the condition that exists when there are limited wants and unlimited resources
c. the value of next-best alternative when a decision is made; it’s what is given up.
d. the price that is paid when purchasing something you do not really want.
c. the value of next-best alternative when a decision is made; it’s what is given up.
5. The information, alternatives, and opportunity costs present at the time of making a decision are known as:
a. benefits of making a decision.
b. implicit alternatives.
c. trade-offs.
d. explicit alternatives.
d. explicit alternatives.
why it is explicit instead of implicit?
It is explicit because the information, alternatives, and opportunity costs are identifiable and recognized at the time of making a decision. They are explicitly considered and evaluated in the decision-making process. On the other hand, implicit alternatives refer to the options that we may not be aware of or do not recognize when making a decision. Therefore, in the context of the question, explicit alternatives is the correct answer.
6. According to the law of demand, if the price of a good increases, price and quantity will move along the curve
a. up and to the right
b. up and to the left
c. down and to the right
d. down and to the left
d. down and to the left.
should it be up and to the left. price is on the y axis and quantity on the x axis. Price up, quantity down. So, at $1, quantity =10. At $2, quantity=9. At $3, quantity=8. So the curve is moving upward to the left right?
You are correct. I apologize for the confusion in my previous response. According to the law of demand, as the price of a good increases, the quantity demanded of the good decreases, resulting in a downward-sloping curve. Therefore, the correct answer is:
d. down and to the left.