If American imports run chronically above our exports, a trade deficit develops
a. True
b. False
Indicate whether the statement is true or false
True
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Define opportunity cost. A student who has just graduated from college has three job offers: the first job pays him $35,000 a year, the second job pays him $23,000 a year, and the third one pays him $15,000 a year
What is the student's opportunity cost of taking the first job?
In a one-period economy
A) consumption equals disposable income. B) consumption equals disposable income plus the value of non-market work. C) savings is always positive. D) consumers may increase their consumption by borrowing.
The law of demand refers to the:
a. tendency of prices to increase as more units of a product are demanded. b. increase in price that results from an increase in demand for a good with a limited supply. c. inverse relationship between the price of a good and the quantity of the good demanded. d. increase in the quantity of a good available as the price of the good increases.
Excess reserves are equal to:
a. total reserves plus required reserves. b. total reserves multiplied by required reserves. c. total reserves minus loans. d. total reserves minus required reserves. e. required reserves minus loans.