Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?
A) the nominal interest rate that would have been earned on the money
B) There is no cost.
C) the implicit cost of the money
D) the real interest rate that would have been earned on the money
D
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Which of the following statements is true regarding part-time workers?
A) Part-time workers who are part-time for economic reasons are included in the unemployment rate, but part-time workers who are part time for noneconomic reasons are not included in the unemployment rate. B) The percentage of workers who are part time due to non-economic reasons rise significantly during recessions. C) The percentage of workers who are part time due to non-economic reasons is about the same percentage as those who are voluntary reasons. D) Part-time workers are divided those who voluntary choose part-time work and those who work part-time due to economic reasons. E) The percentage of workers who are part time due to economic reasons does not change much over the business cycle.
Suppose the MPC is 0.60 . Assume there are no crowding out or investment accelerator effects. If the government increases expenditures by $200 billion, then by how much does aggregate demand shift to the right? If the government decreases taxes by $200 billion, then by how much does aggregate demand shift to the right?
a. $300 billion and $180 billion b. $300 billion and $300 billion c. $500 billion and $300 billion d. $500 billion and $500 billion
(Figure: Wireless Mouse Market) Look at the figure Wireless Mouse Market. Use the graph to calculate consumer surplus when the market is at equilibrium.
A) $5,000 B) $2,500 C) $3,000 D) $4,000
Public goods will not be produced in the private sector because entrepreneurs cannot ____________________.
Fill in the blank(s) with the appropriate word(s).