Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25), read a good novel (you value this at $13), or go in to work (you could earn $20 during the economics class). The opportunity cost of going to your economics class is
A) $20, because this is the only alternative of the three where you actually receive a monetary payment.
B) $13, because this is the lowest valued alternative forfeited.
C) $25, because this is the highest valued alternative forfeited.
D) $58, because this is the total dollar sum of the alternatives forfeited.
C
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The GDP deflator is 100 times the ratio of ________
A) GDP to GNP B) GNP to GDP C) real GDP to nominal GDP D) nominal GDP to real GDP
Which of the following would a bank NOT hold as insurance against the highest cost of deposit outflow-bank failure?
A) excess reserves B) secondary reserves C) bank capital D) mortgages
Which of the following statements accurately characterizes American trade during the Revolutionary War?
a. The American colonies actively traded with France, Holland and Spain until 1778, when trade was hampered by British blockades. b. British blockades hampered the trade activities of first Northern and later Southern ports. c. American trade remained below pre-war levels. d. Decreases in imports led to increases in domestic production of textiles, beer and other products. e. Both b and c are correct.
If a household's income falls from $26,000 to $24,000 and its saving falls from $1,000 to $500, then its _____
a. marginal propensity to consume is 0.98 b. marginal propensity to consume is 1.33 c. marginal propensity to consume is 0.25 d. marginal propensity to save is 0.02 e. marginal propensity to save is 0.25