From an economic perspective, when a student decides to go to the movies instead of studying for a test, it indicates that in the student's thinking the marginal:
A. Benefit of studying is greater than the marginal cost of studying
B. Cost of going to the movies is less than the marginal benefit of going to the movies
C. Benefit of studying are greater than the marginal benefit of going to the movies
D. Cost of going to the movies is greater than the marginal cost of studying
Answer: B
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If inflation does not adjust rapidly in the short run, then when the Federal Reserve increases the nominal interest rate, the real interest rate in the short run will ________.
A. decrease B. be determined by saving and investment decisions. C. increase D. not change
Which of the following would not be considered a negative externality?
a. loud rap music at 2 a.m. in the apartment next door to you b. traffic congestion c. an Alaskan oil spill d. measles vaccinations e. air pollution
Which of the following policies is NOT in the Fed's monetary toolbox?
a. Buying government bonds b. Increasing the quantity of reserves c. Lending reserves to banks d. Issuing a bank run
Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. If opportunity costs are constant, the two countries will gain from trade at a rate of exchange of
A. 0.1 computer for 1 bicycle. B. 8 bicycles for 1 computer. C. 5 computers for 1 bicycle. D. 1 computer for 1 bicycle.