William can create 30 meals in one hour, or wash 90 dishes in the same time. Jeremy can create 25 meals in one hour, or wash 50 dishes in one hour. Using opportunity cost, who should specialize in what task?
What will be an ideal response?
Jeremy gives up fewer dish washings per meal creation, so Jeremy should create meals.
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A variable that is potentially affected by an experimental treatment is referred to as a(n):
A) compulsory variable. B) omitted variable. C) independent variable. D) dependent variable.
The proposition that policy actions have no real effects in the short run if the policy actions are anticipated is known as
A) the policy irrelevance proposition. B) the Keynesian proposition. C) the inflation stabilization proposition. D) the unemployment stabilization proposition.
Suppose you and your friend are in a shopping mall and you borrow $100 from your friend to pay for a pair of shoes that you purchase in a shop. This is an example of
A) direct financing. B) indirect financing. C) moral hazard. D) transaction costs.
According to traditional Keynesians, monetary policy is ineffective in affecting the economy during a recession because
A) an increase in the money supply will have little impact on interest rates. B) an increase in the money supply will only lead to higher interest rates. C) an increase in the money supply will only lead to lower investment spending. D) an increase in the money supply will raise the amount of government debt.