Steve and Karen decide to attend the same concert when they are each given free tickets to it. We know that
A) both bear the same opportunity cost because they are seeing the same thing.
B) both bear the same opportunity cost because the tickets have the same face value.
C) both bear an opportunity cost that depends on what each person is giving up to attend the concert.
D) neither bears an opportunity cost since the tickets were given free to them.
C
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Which of the following observations is not true of a budget line?
A. It indicates what choices are available to the consumer. B. It is a curve of constant expenditure. C. Its slope reports the market terms on which the consumer can trade one good for another. D. It helps examine the consumer’s preferences.
A problem associated with import substitution as an industrial policy is:
A. it removes the incentive for industries to be efficient. B. industries are often chosen for political, not economic, reasons. C. it often stays in place long after it was expected to lapse. D. All of these are problems associated with import substitution policy.
According to neo-Keynesians, the long-run Phillips curve is essentially horizontal
Indicate whether the statement is true or false
Darla puts her money into a bank account that earns interest. One year later she sees that the account has 6 percent more dollars and that her money will buy 7.5 percent more goods
a. The nominal interest rate was 13.5 percent and the inflation rate was 7.5 percent. b. The nominal interest rate was 13.5 percent and the inflation rate was 1.5 percent. c. The nominal interest rate was 6 percent and the inflation rate was -1.5 percent. d. The nominal interest rate was 6 percent and the inflation rate was 7.5 percent.