Which of the following statements correctly uses the concept of opportunity cost in decision making?
I. "Because my secretary's time has already been paid for, my cost of taking on an additional project is lower than it otherwise would be."
II. "Since NASA is running under budget this year, the cost of another space shuttle launch is lower than it otherwise would be."
A) I is true, and II is false.
B) I is false, and II is true.
C) I and II are both true.
D) I and II are both false.
D
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Indicators of economic activity that move at the same time as the overall economy are called ________ indicators.
A. short-term B. real C. long-term D. coincident
In the above figure, a(n) ________ would be set ________
A) effective minimum wage; above $6.00. B) union wage; above $9.00 but would not affect the natural rate of unemployment. C) efficiency wage; below $9.00 D) efficiency wage; above $6.00. E) efficiency wage; above $9.00 and would increase the natural rate of unemployment
Suppose you have two investments to choose from:
1, A one-year $20,000 zero coupon bond 2, A two-year $20,000 zero coupon bond What is the difference between the prices of these bonds if the interest rate rises from 4% to 5%? A) You would lose $167.39 more on the two year bond. B) You would lose $167.39 more on the one year bond. C) You would gain $350.54 more on the two year bond. D) You would lose $183.15 more on the one year bond.
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.