Suppose a typical household holds $500 when the interest rate is 2 percent. When the interest rate rises to 3 percent, the household would most likely hold
A. more money because the opportunity cost of holding money is lower.
B. more money because the opportunity cost of holding money is higher.
C. less money because the opportunity cost of holding money is lower.
D. less money because the opportunity cost of holding money is higher.
Answer: D
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In order for Mary to qualify for benefits under a means-tested transfer payment program,
a. she must have worked and contributed to the program b. she must be able to repay the cash transfer at a later date c. the head of her household must be able to hold a job d. she must be totally disabled e. her household's income and/or assets must fall below a certain level
If the net public debt expanded last year, then which of the following most likely occurred during the year?
A. The government experienced a budget surplus. B. The government's budget was balanced. C. The government's tax collections exceeded its spending. D. The government experienced a budget deficit.
The optimal level of emissions of most pollutants is zero.
Answer the following statement true (T) or false (F)
Table 5-2 Number of coconuts 0 1 2 3 4 Robinson’s marginal utility C $2.00 $1.88 $1.60 $1.30 ? According to Table 5-2, Robinson’s total utility from having two coconuts is ____.
A. $1.87 B. $1.66 C. $3.88 D. not determinable from the information in the table