Opportunity cost is best defined as the value of
a. all of the other possible options that the decision maker could have chosen.
b. the alternative which the decision maker would choose if more resources were available.
c. what is gained from the alternative which is chosen.
d. resources that are given up to obtain the alternative that is chosen.
e. the next best alternative that the decision forces one to give up.
e
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Taxes provide individuals with incentive to:
(a) Increase the number of working hours. (b) Increase productivity by working longer and harder. (c) Direct resources to uses where taxes are relatively low or nonexistent. (d) Buy and save more.
if $3,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
a. $3,300,000 b. $3,000,000 c. $3,090,000 d. $2,910,000
When the Fed ________, the U.S. foreign exchange rate falls
A) increases the size of the multiplier B) raises the interest rate C) raises taxes on interest income D) buys government securities E) sells government securities
A lagging variable ________
A) reaches a peak or trough before the turning point of the business cycle B) reaches a peak or trough after the turning point of the business cycle C) reaches a peak or trough at the same time as the turning point of the business cycle D) all of the above E) none of the above