The opportunity cost of the debt is the change in the mix of output that occurs when public sector spending crowds out private sector spending.
Answer the following statement true (T) or false (F)
True
The opportunity cost is the most desired goods or services that are forgone in order to obtain something else. Crowding out causes an opportunity cost because the increased government spending results in the loss of private sector borrowing (and spending).
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Based on the data in the table above, the economy will be in short-run equilibrium at a price level of
A) 90. B) 110. C) 100. D) 120.
Monopolist fears that central banks would unfairly compete with all other profit-maximizing banks contributed to the demise of the First and Second Banks of the U.S
Indicate whether the statement is true or false
Which oligopoly model leads to price rigidity? Graphically show why.
What will be an ideal response?
If the price of gasoline decreases, what will be the impact in the market for public transportation?
A) The demand curve for public transportation shifts to the right. B) The quantity of public transportation demanded increases. C) The demand curve for public transportation shifts to the left. D) The quantity of public transportation demanded decreases.