Some college students think that because a college degree greatly increases their earning potential there is no opportunity cost of attending college. How would an economist look at the matter?
A. There is no opportunity cost, assuming that future earnings actually increase as expected.
B. The opportunity cost is much less than it would appear, assuming that earnings increase.
C. Opportunity cost is a meaningless concept in this situation.
D. The college students are completely correct in all respects.
E. There is still an opportunity cost, even if it is justified by higher future earnings.
Answer: A
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A) 1328 B) 332 C) 320 D) 960.
The demand for loanable funds curve is
A) downward sloping when plotted against the real interest rate. B) vertical at the full employment level of investment. C) constant at the maximum expected profit rate. D) upward sloping when plotted against the real interest rate.
Statistics on families below the poverty line may be overstated because:
a. the poor are primarily children who soon will move out of poverty. b. poverty in the United States is rich compared to poverty in other nations. c. the income levels used to measure poverty do not include in-kind transfers. d. unemployment compensation is a program closed to the poor.
As a competitive economy uses its stocks of a depletable resource,
a. the resource price will fall by ever greater amounts each year. b. the resource price will rise by ever greater amounts each year. c. the use of the resource will increase at an increasing rate. d. resource use will drop to zero.