Suppose that you have received $300 as a birthday gift. You can spend it today or you can put the money in a bank account for a year and earn 5 percent interest. The opportunity cost of spending the money today, in terms of what you could have after one year, is
a. $0.
b. $15.
c. $305.
d. $315.
d
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Macroeconomics is converging with microeconomics because
A) macroeconomic relationships depend on microeconomic behavior. B) macroeconomics studies total output. C) government deficits and unemployment go together. D) inflation means a general increase in prices. E) microeconomic theories are easily testable whereas macroeconomic theories are difficult to test.
The fastest growing economy between 1870 and 1979 was
a. the United Kingdom. b. the United States. c. Japan. d. Brazil.
Positive economics
A. does not depend on market interactions. B. only looks at the best parts of the economy. C. examines how the economy actually works (as opposed to how it should work). D. is very subjective.
Which of the following statements is false?
A. One of the basic principles capitalism is based on is to "trust no one." B. To have real competition in a market economy no one business should be able to have any influence over price. C. A basic trade-off exists between the goals of equity and efficiency for a society. D. The forces of supply and demand will NOT automatically lead to an equitable distribution of income.