If a consumer's fixed income increases, his opportunity cost also increases.
Answer the following statement true (T) or false (F)
False
Rationale: Although a consumer's choices may change, his opportunity cost does not, since the opportunity cost is determined by the price of the good, not by his increased income.
You might also like to view...
According to the long-run Phillips curve, if the Fed increases the growth rate of the money supply, what happens to the inflation rate and the unemployment rate in the long run?
If a nation restricts imports, it will:
A. harm each individual citizen in that nation. B. decrease the total value of goods and services produced in that nation. C. benefit each individual citizen in that nation. D. increase the total value of goods and services produced in that nation.
The percentage of a bank's total deposits held in reserves, either as cash in the vault or as deposits at the local Federal Reserve bank, is:
a) the reserve ratio. b) the reserve requirement. c) excess reserves. d) the money ratio.
The benefits from research and development activities
A. are limited to the firms investing in similar research and development projects. B. are limited to the nation in which the research and development is taking place. C. are limited to the firm winning a patent. D. spill over to others, including foreign residents.