The opportunity cost of holding money
A. is zero because money is not an economic resource.
B. varies inversely with the interest rate.
C. varies directly with the interest rate.
D. varies inversely with the level of national income.
C. varies directly with the interest rate.
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Everything else constant, a stronger dollar will mean that
A) vacationing in England becomes more expensive. B) vacationing in England becomes less expensive. C) French cheese becomes more expensive. D) Japanese cars become more expensive.
Each of the following is a challenge that society's would face in trying to use the second welfare theorem to achieve equity without sacrificing efficiency EXCEPT:
A. endowments aren't always easily observable. B. wealth isn't an endowment. C. lump-sum transfers distort choices. D. transfers based on wealth aren't lump-sum transfers.
Describe the major sources of tax revenue and expenditures for the federal government
A purely competitive firm is in short-run equilibrium and its MC exceeds its ATC. It can be concluded that:
A. this is an increasing-cost industry. B. the firm is realizing a loss. C. the firm is realizing an economic profit. D. firms will leave the industry in the long run.