You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game?
A. the entire cost of the movie rental, since you have already watched the movie
B. one half the rental cost, because you have already watched the movie one time
C. zero, because you already paid for the rental
D. the football game you forego by watching the movie again
Answer: D
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If the U.S. government retires the national debt, then
A) a shift in the demand of loanable funds will cause interest rates to rise. B) a shift in the demand of loanable funds will cause interest rates to fall. C) a shift in the supply for loanable funds will cause interest rates to rise. D) a shift in the supply for loanable funds will cause interest rates to fall. E) there will be an excess supply for loanable funds.
For which of the following is demand most likely to be perfectly inelastic?
a. BMW automobiles b. Pepsi Cola c. hot dogs d. insulin e. Tylenol
Entrepreneurs have a strong incentive to
a. discover new production techniques that reduce costs. b. introduce new products that are highly valued relative to their cost. c. produce goods that are valued more highly than the resources required for their production. d. do all of the above.
Monetary policy directly affects:
A. the antitrust laws. B. tax rates. C. social spending. D. the availability of credit.