A rise in the interest rate
A. increases the opportunity cost of consuming today.
B. decreases the opportunity cost of consuming today.
C. increases the opportunity cost of consuming in the future.
D. decreases the opportunity cost of consuming in the future.
Answer: A
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If Al has an absolute advantage over Beth in preparing meals, then:
A. Al can prepare more meals in a given time period than Beth. B. the problem of scarcity applies to Beth but not to Al. C. it takes Al more time to prepare a meal than Beth. D. Al's opportunity cost of preparing a meal is lower than is Beth's.
Which of the following would not be studied in microeconomics?
A. How individual firms decide how much to produce. B. Whether the federal budget should be balanced. C. How an early freeze in California will affect the price of fruit. D. Whether to study or watch TV tonight.
Which of the following is a positive statement?
A. A humidity level of 90 percent is too high. B. It is too hot to run outside when the temperature exceeds 80 degrees. C. The temperature is 92 degrees today. D. Summer evenings are nice when it cools off to around 70 degrees.
Nation Alpha has a comparative advantage in product X and nation Beta has a comparative advantage in product Y. Trade in the two products will only benefit the two nations if:
A. The exchange ratio of X for Y is fixed B. The terms of trade increase in both nations C. There is excess capacity in both economies D. The prices charged for X and Y reflect their domestic opportunity costs