What must be giving up to obtain an item is called
a) out-of-pocket cost
b) comparative worth
c) opportunity cost
d) absolute value
Answer: c) opportunity cost
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According to the textbook application, the EPA reported in 1993 that
a. secondhand smoke was a carcinogen b. secondhand smoke was prohibited from public places c. secondhand smoke did not pose a human health risk d. none of the above
Which would you rather have? a) $10,000, 20 years from now at 4% interest or b) $10,000 7 years from now if the interest rate is 12%.
What will be an ideal response?
One of the assumptions of monopolistic competition is that firms produce differentiated products. What does this assumption imply about the demand curve facing a representative firm?
What will be an ideal response?
What happens when the Fed sells government bonds?
A) The money supply tends to rise. B) The money supply tends to remain unchanged. C) The money supply tends to fall. D) The U.S. budget deficit necessarily rises.