The opportunity cost of an item is:
a. greater during periods of inflation and lower during periods of deflation.
b. the highest valued alternative you give up to get that item
c. the value of all available alternatives you sacrifice to get that item.
d. always equal to the dollar value of the item.
b
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An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____
a. one percent; quantity supplied; two units b. one unit; quantity supplied; two units c. one percent; quantity demanded; two percent d. one unit; quantity demanded; two units e. ten percent; quantity supplied; two percent
All of the following are reasons average workers in the United States today produce more than their counterparts a century ago EXCEPT that the modern worker:
A. is better educated. B. has more physical capital to work with. C. has better technology to work with. D. works longer hours.
Which of the following options is NOT a characteristic of a proprietorship?
A. double taxation B. unlimited liability C. easy to form and dissolve D. single ownership
The policy irrelevance proposition implies that
A) anticipated monetary policy actions are effective in increasing real GDP, but they do not reduce unemployment. B) anticipated monetary policy actions are effective in stimulating aggregate supply, but they are not effective in stimulating aggregate demand. C) unanticipated monetary policy actions are equally effective in stimulating both aggregate demand and aggregate supply. D) anticipated monetary policy actions are ineffective in generating changes in real GDP.