Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. If Alex becomes a full-time student, then:
A. the opportunity cost of attending State U. includes the sum of the benefits Alex would have had from attending each of the other schools to which he was admitted.
B. Alex has no incentive to study hard while at State U.
C. the opportunity cost of attending State U. includes the money Alex could have earned working for four years.
D. attending State U. for four years is costless for Alex.
Answer: C
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Thomas Robert Malthus believed
A) that food supplies would always be more than sufficient to feed the world's population. B) that the world's population would eventually outstrip food supplies. C) that population growth was good for the world. D) that population growth would eventually lead to an increase in the quality of life for everyone.
Why do people demand money balances (i.e., hold currency and checking account balances) as a way of holding their wealth, rather than, financial investments?
a. Some amount of money is demanded for everyday market transactions like parking fees, lunch, and buying groceries. b. Money balances generally earn a higher return than other financial investments. c. Holding money balances serves as a way of protecting one's assets from the effects of inflation. d. People demand money balances to increase money supply in the economy.
A "capitalist" is someone who:
A. owns stock. B. opens a retirement account. C. holds a treasury bond. D. All of these statements are true.
The national debt is unlikely to cause national bankruptcy because the:
A. national debt can be refinanced by issuing new bonds. B. interest on the public debt equals GDP. C. national debt cannot be shifted to future generations for repayment. D. federal government cannot refinance the outstanding national debt.