The opportunity cost of something is:
A. the cost of the labor used to produce it.
B. what you sacrifice to get it.
C. the price charged for it.
D. the search cost required to find it.
Answer: B
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In the long run, all of the following are true for a monopolist EXCEPT
A) P > ATC. B) P = MC. C) MR = MC. D) P > AVC.
Which of the following is NOT a characteristic of a market in equilibrium?
A. There is neither excess supply nor excess demand. B. Sellers can sell as many units as they want at the equilibrium price. C. Neither buyers nor sellers want the price to change. D. Buyers can buy as many units as they want at the equilibrium price.
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of:
A. $10. B. $90. C. $100. D. $1,000.
A sharp increase in stock prices makes people much wealthier. If the main effect of this increased wealth is felt on labor supply, what happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase. B. Both employment and the real wage rate would decrease. C. Employment would increase and the real wage would decrease. D. Employment would decrease and the real wage would increase.