Opportunity Costs
Opportunity cost is defined as...
What is giving up something to get something?
Average cost is...
What is the total cost of production divided by the total quantity produced?
The total cost curve is...
What is showing the relationship between the total cost of production and the quantity of output produced, derived from the production function and the prices of inputs?
Real GDP is...
What is the value of the production of goods and services using prices from a base year?
The 4 components are...
What is consumption, investment, government spending, and net exports?
What is included in the calculation of opportunity cost...
Marginal cost is...
What is the additional cost incurred to produce one more unit of output?
Production frontier is...
What is the mathematical function that shows the relationship between the quantity of inputs used in production and the quantity of output produced?
Nominal GDP is...
What is the value of the production of goods and services using current-year prices?
One example of government spending is...
What is road construction, funding schools, and government employee salaries?
If a country specializes in producing a good with a lower opportunity cost, the economic benefit is...
If a factory produces 100 cars and the cost of producing the 101st car is $20,000, the marginal cost of the 101st car is...
What is $20,000?
The two primary cost components of the total cost curve are...
What are fixed and variable costs?
The price used when calculating real GDP is...
What is a price from a base year (constant price)?
An example of consumption and an example of investment...
Consumption:
What are groceries, haircuts, and new cars?
Investment:
What is new machinery, building houses, and stockpiling goods?
A government decides to allocate more funding to education. The likely opportunity cost of this decision is...
What is reduced funding for healthcare, infrastructure, or other public services?
Costs that do not vary with the quantity of output are called...
What are fixed costs?
True or False
If a firm experiences diminishing marginal productivity of labor, the total cost-curve gets flatter as the quantity of output increases...
What is false?
Because producing additional output requires additional labor thus increasing cost.
The price that is used when calculating nominal GDP...
What is the current-year price?
Net exports is found with this equation...
What is net exports = exports - imports?
An economic concept based on opportunity cost...
What is the production possibilities frontier?
A small bakery has fixed costs of $100 per day for rent and utilities. If it costs $2 per loaf to make bread. The average total cost per loaf if they make 100 loaves is...
What is $3?
Positive technological change affect the production function and the total cost curve because...
What is it can shift the production function upward allowing more output to be produced with the same inputs?
The GDP that is unaffected by inflation or deflation...
What is real GDP?
The equation used to calculate GDP is...
What is GDP = C + I + G + NX?