Ceteris paribus, economic growth involves an:
a) Increase in imports.
b) Expansion of production possibilities.
c) Increase in GDP due to inflation.
d) Increase in GDP due to inflation.
Answer: b) Expansion of production possibilities.
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The wage rate is the opportunity cost of
A) leisure. B) consumption. C) working overtime. D) working.
Installment-plan buying permits consumers to use the income generated from their private assets to pay for goods and services
Indicate whether the statement is true or false
Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis to choose between going to the concert and going out to dinner, the opportunity cost of going out to dinner should include:
A. neither the cost of the ticket nor the entertainment value of the concert. B. the cost of the ticket plus the entertainment value of the concert. C. only the cost of concert ticket. D. only the entertainment value of the concert.
The economy’s self-correcting mechanism always tends to push the unemployment rate back toward a specific rate of unemployment called the
A. ideal rate of unemployment. B. natural rate of unemployment. C. full rate of unemployment. D. mature rate of unemployment.