On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
A) working out at the gym, having breakfast with friends, and sleeping late.
B) working out at the gym.
C) zero because you do not have to pay money to use the library.
D) not clear because not enough information is given.
B
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When the coupon rate on newly issued bonds increases relative to older, outstanding bonds, what happens?
A) The market price of the older bond falls in the secondary market. B) The market price of the older bond rises in the secondary market. C) Older bonds will sell for more than their face value. D) Older bonds can still be sold at their face value.
The law of diminishing marginal utility explains why
a. most individual demand curves are straight lines. b. the consumer's optimal purchase is at the tangency of an indifference curve and the budget line. c. most individual demand curves slope downward. d. marginal utility falls when total utility falls.
Figure 11-2
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Which graph in Figure 11-2 best reflects a Keynesian’s view of the impact of raising taxes on saving?
A. 1 B. 2 C. 3 D. 4
Assume that Currency 1 appreciated in terms of Currency 2 . Which of the following statements is always true?
a. Currency 2 appreciated as well in terms of currency 1. b. Currency 2 may have appreciated or depreciated in terms of currency 1. c. Currency 2 depreciated in terms of currency 1. d. Currency 2 appreciated in terms of any currency. e. Currency 2 depreciated in terms of any currency.