How do economists define the opportunity cost of producing something?
a. all the options given up when a choice is made
b. the value of the best alternative that was not pursued
c. the average debt incurred to establish a business
d. the financial risk involved in pursuing an opportunity
b. the value of the best alternative that was not pursued
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An economy that is producing inside its production possibilities frontier can be efficient.
Answer the following statement true (T) or false (F)
During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment
A) increased the natural rate of unemployment. B) could have increased or decreased the natural rate of unemployment. C) decreased the natural rate of unemployment. D) had no effect on the natural rate of unemployment.
Interest-rate risk is the riskiness of an asset's returns due to
A) interest-rate changes. B) changes in the coupon rate. C) default of the borrower. D) changes in the asset's maturity.
In the early days of the labor movement, there was a struggle between two groups. What did these two groups want?
A. One group wanted better wages, hours and working conditions and the other wanted a universal 8-hour day and the elimination of the wage system. B. One group wanted a universal 8-hour day and the elimination of the wage system and the other wanted to establish government ownership of the means of production. C. One group wanted to establish government ownership of the means of production and the other wanted to abolish factories and provide every family with 160 acres of land. D. One group wanted to abolish factories and provide every family with 160 acres of land and the other wanted better wages, hours, and working conditions.