Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1 ) chat with her friends, (2 ) study economics or (3 ) take a nap
The opportunity cost of chatting with her friends is A) the combined value of studying economics and taking a nap.
B) the value of studying economics, the next best use of time.
C) the value of chatting with her friends.
D) zero since she does not pay her friends to talk to her.
B
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Which of the following types of income are subject to FICA taxes?
A. Interest income B. Inheritance C. Wages and salaries D. Capital gains
The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with
A) Lucas and Friedman. B) Friedman and Schwartz. C) Kydland and Prescott. D) David Runkle.
If the production possibilities frontier is a straight line,
a. its slope will equal -1 b. resources must not be used efficiently c. resources must be unemployed d. society must not be using the latest technology e. resources must be equally adaptable at producing either product
Ted spread is
A) the difference between the riskless rate and the rate at which banks are willing to lend to each other. B) the difference between the riskless rate and the yield on corporate bonds. C) the difference between the riskless rate and return on stocks. D) none of the above