A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, what's his opportunity cost as an opera star?
A) $2.0 million
B) $100,000
C) $1.9 million
D) $2.1 million
B
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In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, raising the federal funds interest rate,
everything else held constant. A) rise; decreases B) rise; increases C) decline; increases D) decline; decreases
When total planned real expenditures change due to the changes in net exports, this is known as the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
In the classical model, which of the following is treated as independent of the interest rate?
a. the quantity of loanable funds demanded by government b. the quantity of loanable funds demanded by businesses c. the total quantity of loanable funds demanded d. household saving e. the total quantity of loanable funds supplied
The Federal Open Market Committee meets about
a. every six days. b. every six weeks. c. every six months. d. every sixteen months.