The opportunity cost of going to a movie is:
A) the money spent on the ticket only.
B) all of the other movies that could have been seen instead.
C) the time spent in the theater only.
D) the next best use of the time and the money spent.
Ans: D) the next best use of the time and the money spent.
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The 1930s were a period of
a. strong economic expansion and rapid growth of real output. b. high rates of inflation coupled with a low rate of unemployment. c. depressed economic conditions and prolonged high rates of unemployment. d. strong growth of real output even though the general level of prices was declining.
When marginal revenue for a seller is more than marginal cost, the seller is
A) making a positive net revenue but not necessarily maximizing net revenue. B) maximizing net revenue and making a positive net revenue. C) maximizing net revenue even if net revenue is negative. D) not maximizing net revenue.
Which of the following is an example of securitization?
A) a bank bundles a group of mortgage loans and sells the bundle to investors B) an investor sells his shares of stock and uses the proceeds to purchase Treasury bonds C) a household deposits cash in a savings account that is insured by the FDIC D) a government chooses to only purchase Treasury securities from other governments that are financially sound
An open market purchase by the Fed:
A. increases the total amount of reserves in the banking system. B. decreases the total amount of reserves in the banking system. C. does not change the total amount of reserves in the banking system. D. causes the reserve requirement to fall.