Give some examples of opportunity cost.
What will be an ideal response?
ANS:
A prime example is the income students forgo by not working full time while they are attending college. Another example is the interest income a person must forgo if she or he pays cash for an automobile.
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The aggregate demand curve slopes downward because households feel poorer after a decrease in the price level
a. True b. False Indicate whether the statement is true or false
John Maynard Keynes noted that
A. we could print all the money we want and still have scarcity. B. "to secure the greatest amount of pleasure with the least possible outlay should be the aim of all economic effort." C. the general notion that scarcity is due to not having enough money is an illusion. D. we could print all the money we want and still have scarcity AND the general notion that scarcity is due to not having enough money is an illusion.
Okun's law expresses the relationship between:
A. unemployment and inflation. B. cyclical unemployment and the output gap. C. frictional unemployment and structural unemployment. D. the money supply and the velocity of money.
Anything that makes it more difficult to exchange one currency for another tends to
A. increase imports. B. increase exports. C. decrease imports. D. all of the options are correct.