The opportunity cost of a particular activity is the sum of the benefits that could have been received from all foregone activities
a. True
b. False
B
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Actual investment is the:
A. spending households engage in based on forecasted budget. B. amount that firms actually allocate to inventory accumulation. C. investment a firm makes into stocks and bonds in order to generate profit. D. amount that firms really allocated to new capital resources and inventory accumulation.
Aggregate demand is the sum of total domestic spending by the private sector
a. True b. False Indicate whether the statement is true or false
A markup of price over marginal cost is inconsistent with free entry and zero profit
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a function of the interbank part of the foreign exchange market?
A. Provides clearing services for organizations that prefer to use different currencies B. Provides a bank with a continuous stream of information on conditions in the foreign exchange market C. Permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future D. Provides a bank the means to readjust its own position quickly and at low cost when it separately conducts a large trade with a customer