Which of the following is the opportunity cost of money?
a. The use of money as a means of payment
b. The trouble of having to get money out of the bank
c. The interest forgone by holding money
d. The ability to purchase things at a moment's notice
e. Commissions paid to brokers
C
You might also like to view...
The economy is at full employment when
A) there are no unemployed workers. B) all unemployment is frictional or structural. C) there are fewer unemployed workers than available jobs. D) all unemployment is cyclical.
As the price of milk increases, what would reasonably be expected to happen to the equilibrium price and equilibrium quantity of cereal? (Milk and cereal are complements.)
A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would decrease and equilibrium quantity would increase. D) Equilibrium price and quantity would both increase.
The City Symphony presents three open-air concerts in the city park pavilion during the spring and summer. Many who attend make donations for symphony expenses, but the donation is not required. Some who attend make no contributions. Economists would
A. classify the noncontributors as detrimental externalities. B. call the concerts excludable events. C. call the noncontributors free riders. D. call the concerts depletable goods.
Marginal propensity to consume
A. gives the amount a person changes planned consumption for a change in real disposable income. B. is the proportion of total disposable income that is consumed. C. is the amount of consumption that is independent of the level of disposable income. D. is the same as the break-even point.