How are changes in opportunity cost predicted to affect behavior?
A) The lower the opportunity cost of doing X, the less likely X will be done.
B) The higher the opportunity cost of doing X, the less likely X will be done.
C) The lower the opportunity cost of doing X, the more likely X will be done.
D) a and c
E) b and c
E
You might also like to view...
The slope of the consumption function is equal to:
A) the marginal propensity to consume. B) autonomous consumption. C) the marginal propensity to save. D) zero.
The amount of government spending on education per public school student has ________ since 1960, and the achievement level of students has generally ________ since that time
A) increased; increased B) decreased; decreased C) increased; decreased D) decreased; increased
An inferior good
a. has a negative income elasticity. b. is one where the demand curve shifts to the left when income goes up. c. exists only in theory. d. is a low-quality good. e. Both a and b are true.
When the U.S. Treasury sells bonds to the public to finance government spending and then the Fed buys the bonds through open-market purchases, the Fed is
a. monetizing the debt. b. decreasing the money supply. c. decreasing bank reserves. d. increasing the difficulty of raising funds for government spending.