The Potential Benefit That Is Given Up When One Alternative

question 117

True/False

The potential benefit that is given up when one alternative is selected over another is called an opportunity cost.

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Definitions:

Marginal Tax Rates

The rate at which the last dollar of income is taxed, illustrating the percentage of tax applied to your income for each tax bracket in which you qualify.

Supply-Side Economists

Economists who believe that reducing barriers to production and encouraging the supply of goods and services is the most effective way to stimulate economic growth.

Incentives

Rewards or penalties intended to motivate specific behaviors or actions among individuals or entities.

Yield Curve Spread

The difference in yields between two different debt instruments, often used to gauge economic expectations.