Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is
A) equal to the benefit he gets from the review session.
B) the one-hour review session.
C) the value of the session minus the $10 he could have earned at his job.
D) nothing, because the review session does not cost anything.
E) the $10 he could have earned at his job.
E
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If there is 3 percent frictional unemployment, 4 percent structural unemployment, and -2 percent cyclical unemployment, then the natural rate of unemployment equals:
A. 5%. B. 1%. C. 2%. D. 7%.
Assume the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilization of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?
A) Price will increase; quantity cannot be determined. B) Price will decrease; quantity cannot be determined. C) Quantity will increase; price cannot be determined. D) Quantity will decrease; price cannot be determined.
In the figure above, the factor responsible for the decline in the interest rate is
A) a decline the price level. B) a decline in income. C) an increase in the money supply. D) a decline in the expected inflation rate.
If an individual can produce a good or service with a lower opportunity cost than another individual, then he or she is said to have the comparative advantage
a. True b. False Indicate whether the statement is true or false