Question

D Question 18 1 pts Assume you only have the option to do one thing on Friday night. Which of the following is an opportunity cost of going to see a movie that night? there is no possible opportunity cost the satisfaction you would experience from watching the movie the $15 you spend on admission at the theater the satisfaction you would receive from having dinner with your family that night

Answer 1

Question 18. d

Opportunity cost is the lose of profit when one alternative is selected over other. It is the value you give up to choose something else.

Question 19. c

The flow chart is a depiction of Two sector model of circular flow wherein only households and business (firm) are the participants. In this, Households will provide firms with land, labour and capital and firms will provide households with wages, rent, interest and profit.

Question 20. d

When there is change in consumption pattern due to change in the prices of relative good, then it is a case of Substitution effect.

Question 23. Quantity demanded depends on the price of the commodity. If the decrease in price leads to increase in quantity, then it is a case of Increase in quantity demanded.

Whereas in increase in demand, factors other than price is taken into consideration like tastes and preferences, nature of the commodity, price of substitute goods etc. In other words, the price of the commodity is constant and the quantity of the commodity increase because of other factors.