Opportunity cost is best defined as A) the sum of the dollar ...

[JGIBBSON]

Opportunity cost is best defined as
 
  A) the sum of the dollar values of all alternatives given up when choices are made.
  B) the cost of producing the purchased goods.
  C) the next highest valued alternative when a choice is made.
  D) the dollar price of the purchased item.

Question 2

Which of the following is an example of money illusion?
 
  A) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 5 percent.
  B) An individual is willing to work more hours when the nominal wage rises by 10 percent and the overall price level rises by 20 percent.
  C) An individual will neither increase nor decrease the number of hours she is willing to work when the nominal wage rises by 10 percent and the overall price level rises by 10 percent.
  D) none of the above

[elizabethrperez]

Answer to Question 1

C

Answer to Question 2

B

[JGIBBSON]

Thanks for the timely response, appreciate it

[gcook]

Great answer, keep it coming