Briefly explain the concept of opportunity cost. What is the opportunity cost of attending college?
What will be an ideal response?
The opportunity cost of an action is the value of the next best alternative that a person has to give up when making a choice. The opportunity cost of attending college is what the college student would give up by going to school, such as the income she could have earned if she did not go to school.
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All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
In banking terminology, what is meant by maturity? What is meant by maturity transformation?
What will be an ideal response?
Wearing a suit to a job interview is an example of a:
A. positive signal. B. negative signal. C. positive screen. D. negative screen.
Mary deposits funds into a CD at her bank. The CD has an annual interest of 4.0%. If Mary leaves the funds in the CD for two years she will have $540.80. Assuming no penalties for withdrawing the funds early, what amount would Mary have at the end of one year?
A. $520.00 B. $500.00 C. $521.60 D. $490.00