The opportunity cost of an action is always equal to:
a. the monetary expense incurred as a result of the action.
b. the value of any alternative use of the time expended on the action.
c. the highest valued alternatives sacrificed as a result of the action.
d. the sum of the benefits received as a result of the action.
Question 2
The total dollar value of purchases in the economy is far larger than GDP primarily because:
a. GDP ignores taxes.
b. GDP excludes the value of intermediate goods exchanged.
c. GDP excludes the output from foreigners working in America.
d. GDP ignores production in the home
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Part A - Initiating an action potential
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