The opportunity cost of an activity means the:
A. amount of money the activity costs.
B. expected gains minus the expected costs of engaging in the activity.
C. expected gains by engaging in the activity.
D. the value of the best alternative that must be sacrificed in order to engage in the activity.
Answer: D
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Refer to Figure 21.1. If Area I = 1,700 and Area J = 3,300, what is the Gini coefficient?
A) 0.17 B) 0.34 C) 0.52 D) 2.94
Which of the following initiates changes in the Fed's discount rate?
a. Board of Governors b. Federal Reserve Banks c. Federal Open Market Committee d. Department of Commerce e. Treasury Department
Picture in your mind's eye the graph of a profit-maximizing monopolist. If its cost curves—both ATC and MC—shift upward while its demand curve remains unchanged, the monopolist will
a. decrease price and increase output b. decrease both price and output c. increase price and decrease output d. increase both price and output e. keep both price and output at the same level
Macroeconomics deals with the concept of: a. individual households. b. market structures
c. market concentration. d. economic growth.