Which of the following statements about the concept of opportunity cost is true?
A. The opportunity cost of a decision only includes monetary outlays.
B. The opportunity cost of a decision is the next best foregone alternative.
C. All decisions have zero opportunity cost.
D. The opportunity cost of a college education is measured by the payments for tuition and books.
B. The opportunity cost of a decision is the next best foregone alternative.
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In the short run, when the Fed increases the quantity of money, the
A) quantity demanded of money decreases. B) demand for money increases. C) nominal interest rate falls. D) demand for money decreases. E) price level decreases.
Why do most collusive agreements have difficulty surviving?
What will be an ideal response?
If differentiation makes the market demand curve less elastic, then
A) consumer surplus increases. B) the market structure changes into a monopoly. C) price markup over marginal cost is lower than when products are identical. D) price markup over marginal cost is higher than when products are identical.
If the economy were left on its own without the interference of government or the Fed, it would move toward an equilibrium rate of growth that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. classical b. Keynesian c. monetarism d. supply-side e. neo-Keynesian