Opportunity cost is the:
a. cost incurred when one fails to take advantage of an opportunity.
b. price paid for goods and services.
c. cost of the best option forgone as a result of choosing an alternative option.
d. undesirable aspects of an option.
c
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Under fixed exchange rates, which one of the following statements is the MOST accurate?
A) Devaluation causes a rise in output. B) Devaluation causes a decrease in output. C) Devaluation has no effect on output. D) Devaluation causes a rise in output and a decrease in official reserves. E) Devaluation causes a decrease in output and in official reserves.
Which of the following will cause the aggregate demand curve to shift to the right?
A) An increase in the price level B) An increase in the interest rate C) An increase in money demand D) An increase in investment expenditures
A real variable is
a. measured in terms of after-tax dollars b. measured in terms of dollars and not foreign currency c. measured in nominal terms d. measured in terms of current dollars e. measured in terms of purchasing power
In the 1990s, the rising value of the U.S. dollar made imported goods cheaper and this shifted the
a. aggregate demand curve outward. b. aggregate supply curve inward. c. aggregate supply curve outward. d. total expenditures curve upward.