A university offers a free shuttle service around campus. The opportunity cost of the shuttle service to the university is equal to:
a. zero, since it is free to students who want to ride.
b. the wages paid to the shuttle drivers.
c. the wages paid to the shuttle drivers, plus the gasoline expenses.
d. the highest valued alternative use of the resources devoted to the shuttle program.
Question 2
If nominal GDP rises:
a. we can be sure the price level has risen.
b. real GDP may rise or fall.
c. real GDP must rise.
d. real GDP must fall.
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