As real interest rates increase, other things equal, the net present value of education is likely to
A. decrease, possibly becoming negative.
B. remain unchanged.
C. increase.
D. decrease, but necessarily remaining positive, since more knowledge is always a good thing.
Answer: A
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Use the following graph, which shows an aggregate demand curve, to answer the next question. 
If the price level increases from 150 to 250, the real output demanded will ________.
A. increase by $200 billion B. decrease by $200 billion C. decrease by $600 billion D. increase by $800 billion
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will high-demand consumers purchase?
A. 75 B. 175 C. 200 D. 100
Ronnie waits one hour in queue to buy a ticket to a rock concert. The opportunity cost of buying the $28 ticket:
a. is Ronnie's best alternative use of the sum of $28 spent on the ticket. b. is Ronnie's best alternative use of the one hour it took to wait in queue. c. is the revenue of $28 earned by the ticket agent. d. is Ronnie's best alternative use of both $28 and the one hour spent in the queue. e. cannot be measured because there is no opportunity cost associated with consumption.
Compare and contrast the arguments favoring active versus passive policymaking.
What will be an ideal response?