If the interest rate on saving is 5 percent per period, then the true opportunity cost of being paid $100 next period instead of this period is
a. $5.
b. $105.
c. less than $5 if people suffer from a "defective telescopic faculty."
d. more than $5 if people suffer from a "defective telescopic faculty."
a
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The simple circular flow of income shows that the total income in an economy equals
A) all taxes paid by households. B) total expenditures. C) the total amount of money supplied by the government. D) total profits earned by firms.
The economic way of thinking assumes a politician ignores
A) the costs of her actions. B) the benefits of her actions. C) her own interests after taking the oath of office. D) all of the above. E) none of the above.
The host country's balance-of-payments problem tends to worsen when foreign firms:
a. invest solely in capital-intensive industries. b. repatriate their profits to the headquarters from the host country. c. acquire the foreign operations in order to diversify corporate investment holdings. d. refuse to share technological expertise with the host country. e. export all products to other countries.
An economy is operating with optimum efficiency if
a. the price of the product is greater than marginal cost. b. the production of more of commodity A entails the production of less of commodity B. c. marginal cost of output is greater than marginal utility of output. d. an increase in output would result in a decrease in average cost per unit.