What would be the opportunity cost of a child using a coupon for a free ice cream cone?
a. the dollar cost of the cone she selected
b. the other types of ice cream she could have selected
c. zero - because the good was not a durable good
d. zero - because the good was free
b
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Decisions by depositors to increase their holdings of ________, or of banks to hold ________ will result in a smaller expansion of deposits than the simple model predicts
A) deposits; required reserves B) deposits; excess reserves C) currency; required reserves D) currency; excess reserves
To maximize profit, a perfectly competitive firm will produce where MR = MC, but a monopoly and a monopolistically competitive firm will produce where price = ATC
Indicate whether the statement is true or false
Which will cause a larger short-run increase in prices: an anticipated or unanticipated increase in aggregate demand? Will they cause the same increase in prices in the long run?
An increase in the economic output of a society is known as ______.
a. efficiency b. scarcity c. consumerism d. growth