Answer:
B. A business gives its employees a raise, so it cannot afford to buy any TV ads.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For instance, if you decide to invest resources such as money in a paying your employees (workers), your opportunity cost would be the benefits like increased sales you could have earned if you had invested the same amount of resources in advertising your business.
Hence, the situation which best illustrates the economic concept of opportunity is when, a business gives its employees a raise, so it cannot afford to buy any TV ads.
Answer:
wheres the answer choices?
Explanation:
When the Fed wants to increase excess reserves held by banks it buys bonds.
Option A
<u>Explanation:</u>
From the given case, if the federal bank wants to increase excess reserves it can increase the supply of money lowering the reserve requirement.
This in turn will increase the excess reserves in the system there by giving boost the economy by lending loans for infrastructure development and manufacturing sector.
By the way of central bank buying bonds in the open market it will increase the supply of money into the economy by exchanging bonds for cash from the general public.
