Both an NBA basketball player and a fast-food cook are going to graduate school. Who has a higher opportunity cost? Explain
What will be an ideal response?
The opportunity cost is the income lost while going to graduate school. An NBA basketball player typically earns much more than does a fast-food cook so that the opportunity cost of going to graduate school is likely to be higher for the NBA basketball player than for the fast-food cook.
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If a foreign bank operates a subsidiary bank in the U.S., the subsidiary bank is
A) subject to the same regulations as a U.S. owned bank. B) only subject to the regulations of the country in which the foreign bank is chartered. C) restricted to making loans to only foreign citizens in the U.S. D) restricted to accepting deposits from foreign citizens living in the U.S.
If people expect prices to rise in the future, the consumption curve will shift upward
Indicate whether the statement is true or false
The economic costs of forming a currency union will be lower whenever:
A) labor market integration is lower. B) labor market integration is higher. C) labor markets are not integrated. D) wage rigidities are present.
Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
A. the demand for new homes has risen. B. the law of demand has been violated. C. new firms have entered the construction industry. D. construction firms must be facing higher costs.