During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. The benefit of attending college is lower because college graduates are less likely to find jobs.
B. The opportunity cost of attending college is higher when unemployment is high.
C. The opportunity cost of attending college is lower when unemployment is high.
D. Students go to college even when the net benefit is negative.
Answer: C
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Samara's income is $30 a month and she spends all of it on music downloads and gasoline. The price of a music download is $3 and the price of a gallon of gasoline is $3
At Samara's best affordable point, her marginal rate of substitution is ________ gallon of gasoline per music download. A) 0.5 B) 1 C) 1.5 D) More information is needed to determine the marginal rate of substitution.
Which of the following economic measures is most useful in comparing different economies across the world?
a. Aggregate supply b. Total unemployment c. Gross domestic product d. Net national product e. Aggregate expenditure
According to the Taylor rule, the Fed should:
a. lower the fed funds rate by 0.5% if RGDP increases 1.0% over potential GDP. b. raise the fed funds rate by 0.5% if RGDP increases 1.0% over potential GDP. c. raise the fed funds rate by 1.0% if RGDP increases 0.5% over potential GDP. d. raise the fed funds rate by 2.0% if RGDP increases 0.5% over potential GDP.
which is correct?
Federal Reserve notes are an asset to the Federal Reserve. Gold is a liability to the Federal Reserve. Foreign exchange is an asset to the Federal Reserve.