The study of how people choose between the alternatives available to them is
A. definition of economics
B. model of demand
C. theory of opportunity costs
D. method of distinguishing between microeconomics and macroeconomics.
Ans: A. definition of economics
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If a currency increases in value as a result of government decree rather than market forces, the process is known as
A. reflation. B. revaluation. C. appreciation. D. value-added.
If a monopolist is able to price discriminate: a. consumer surplus is increased
b. the welfare loss from monopoly is increased. c. producer surplus is decreased. d. some consumer surplus and deadweight losses are transformed into monopoly profits.
Jack has a ticket to see the Foo Fighters for which he paid $30 yesterday. He takes an unpaid day off from work to get ready for the concert. When he arrives at the concert, five different people offer him $70 for his ticket. Jack decides to keep his ticket. At the time he makes this decision, his opportunity cost of seeing the Foo Fighters is:
A. $70 plus his foregone earnings. B. $70. C. $40. D. $30 plus his foregone earnings.
In Figure 15.2, if the money supply decreased from $200 billion to $100 billion, which of the following would be likely to occur?
A. The quantity of money demanded would increase. B. Aggregate demand would decrease. C. Aggregate supply would increase. D. The demand for money would increase.