Rational choice requires that opportunity cost be
a. ignored in making a decision.
b. considered for individual choices, but not for societal choices.
c. computed, but not actually used in making a decision.
d. considered as part of making a decision.
e. used as the sole decision criterion.
D
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Use the figure below to answer the following question.
Refer to the three demand curves. An "increase in quantity demanded" caused by a change in price would be illustrated by a change from
A. point 2 to point 5. B. point 4 to point 6. C. point 4 to point 1. D. point 5 to point 1.
What is economic freedom and why is it important for economic growth?
What will be an ideal response?
An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to
a. an increase in the marginal revenue product of labor. b. a decrease in the marginal revenue product of labor. c. an increase in the marginal revenue product of automobiles. d. a decrease in the marginal revenue product of automobiles. e. a decrease in the price of automobiles.
A sterilized foreign exchange intervention would:
A. leave the central bank's balance sheet unchanged. B. alter the liability side of the central bank's balance sheet but leave the asset side unchanged. C. alter the asset side of a central bank's balance sheet but leave the domestic monetary base unchanged. D. not alter the central bank's holdings of international reserves.