Opportunity cost
What will be an ideal response?
is the value of the next best alternative as a result of choosing some given alternative
You might also like to view...
We use interest rates to measure the opportunity cost of holding money
Indicate whether the statement is true or false
Inflation ________ the cost of holding money and ________ the after-tax real interest rate
A) decreases; increases B) increases; decreases C) increases; increases D) decreases; decreases E) increases; does not change
If the Fed purchases government securities from Bank A, __________ in the banking system __________ and the money supply __________
A) reserves; fall; falls B) reserves; rise; falls C) reserves; rise; rises D) excess reserves; fall; rises E) excess reserves; rise; falls
In the ultimatum game, what offer do proposers and responders most often settle on?
a. 99/1 b. 70/30 c. 50/50 d. 100/0