The highest valued alternative that must be given up in order to choose an option is called the:
a. opportunity cost. b. utility cost.
c. scarcity expense. d. disutility option.
a
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California passed a law called “Proposition 2 ½” that limited property taxes to 2.5 percent of property value. Naturally this reduced taxes on many properties, and apartment landlords had more money at the end of the year at given rents. This windfall could be called an economic rent only if
A. we push the definition of economic rent too far. B. the supply of rental units can be expanded. C. the supply of rental units is fixed. D. competitors can build housing at costs that yield the return that was earned before the tax cut.
The characteristic of ease of entry and exit ensures that perfectly competitive firms will be able to earn positive economic profits over the long run
Indicate whether the statement is true or false
The government's chief forecasting gauge for business cycles is the chained real GDP indicators
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. Open market operations are seldom conducted any more. B. The basic way the Fed controls the money supply is by manipulating the discount rate. C. During periods of severe recession, the Fed tries to push up interest rates. D. During periods of severe inflation, the Fed tries to push up interest rates.