If the Relative Price of a Concert Ticket Is Three

question 124

Multiple Choice

If the relative price of a concert ticket is three times the price of a meal at a good restaurant, then the opportunity cost of a concert ticket can be measured by the

• A)slope of the budget constraint.
• B)slope of an indifference curve.
• C)marginal rate of substitution.
• D)income effect.

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Definitions:

Phony

Not genuine; fake or deceitful in character or behavior.

Selective Perception

The tendency to define problems from one’s own point of view.

Screened Out

The process of eliminating candidates or options that do not meet predefined criteria.

Implicit Costs

Implicit costs are the opportunity costs of using resources owned by the firm for its own use instead of other purposes.