d Output at capacity Yc refers to the level of output O An e

d) Output at capacity, Yc, refers to the level of output O An economy can produce when retired workers re-enter the labour force O An economy can produce when people are having a tough time finding work O An economy can produce when machines are run the number of hours they are designed for O An economy can produce when children grow into adulthood and enter the labour force e) Kate spends her evening at home, paying $5 to rent a movie rather than spending an equal amount of time to enjoy a ncert. What is the opportunity cost of staying at home? The free concert she missed plus the $5 she spent on the movie O Zero, because the concert is free O Zero, because she has a nice evening watching the movie The $5 she spent on the movie

Solution

d) An economy can produce when machines are run the number of hours they are designed for.

Output at capacity means economy is producing goods by using machinery at its optimal level. When machines are utilised at their efficient level then we get output at capacity.

e) Zero, because the concert is free.

Opportunity cost is the value of next best alternative foregone.