Fred and Ann Both Decide to See the Same Movie

question 387

Multiple Choice

Fred and Ann both decide to see the same movie when they are given free movie tickets. We know that

• A)both bear an opportunity cost since they could have done other things instead of see the movie.
• B)both bear the same opportunity cost since they are doing the same thing.
• C)the cost of going to the movie is greater for the one who had more choices to do other things.
• D)neither bears an opportunity cost because the tickets were free.

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Definitions:

Reducing Inflation

Methods and policies implemented by governments or central banks to slow down the rate at which prices for goods and services increase.

Permanent Scars

Long-term damage or impact left on the economy or individual sectors by significant events, such as financial crises or pandemics.

Costs of Inflation

The economic consequences of inflation, including decreased currency value and increased uncertainty in investment.

Aggregate Demand

The total demand for all goods and services within an economy, including consumption, investment, government spending, and net exports.