Foregone investment opportunities are an example of
a. an explicit cost.
b. an implicit cost.
c. revenues.
d. profits.
b
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At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to
A) the real wage and the budget line is tangent to an indifference curve. B) minus the real wage and the budget line is tangent to the indifference curve. C) the real wage and the budget line intersects the indifference curve. D) minus the real wage and the budget line intersects the indifference curve.
Higher unemployment tends to be associated with
A) the classical model. B) higher real GDP. C) higher nominal GDP. D) lower real GDP.
A country will roughly double its GDP in twenty years if its annual growth rate is:
a. 2.5 percent. b. 3.5 percent. c. 7.5 percent. d. 12 percent.
Higher prices may serve the public interest when:
a. there is a shortage of goods or services available b. there is an uneven distribution of traffic on alternate routes c. higher prices never serve the public interest d. both a and b