George was assigned to read a chapter in economics tonight, but he has a math exam tomorrow. He chooses to study for the math exam and postpone his economics studies until after the exam. What is the opportunity cost of George's decision?
A) The lower math grade he would have received had he not studied for the math exam
B) The economics knowledge he sacrificed by not reading the assigned chapter
C) Both A and B above
D) Without information regarding the price of the textbook and the value to George of the math exam, George's opportunity cost cannot be determined.
B
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Everything else held constant, if the sum of the required reserve ratio and the excess reserve ratio is less than one, a decrease in the currency-checkable deposit ratio will mean
A) an increase in currency in circulation and an increase in the money supply. B) an increase in money supply. C) a decrease in the money supply. D) an increase in currency in circulation but no change in the money supply.
David is willing to pay $30 for a watch which sells at a market price of $20 . The consumer surplus received by David if he buys the watch is $10
a. True b. False Indicate whether the statement is true or false
Refer to Figure 2-9. The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is
a. 10 toothbrushes. b. 20 toothbrushes. c. 30 toothbrushes. d. zero, since the economy has the additional resources to produce 10 additional toasters.
If this firm were a perfect competitor selling its entire output at a price of $1, the marginal revenue product of the third unit of input would be
A. $0.
B. $1.
C. $2.
D. $3.