An economic explanation as to why individuals such as Bill Gates and LeBron James don't finish college is that:
A. the sunk cost of college is very high for them.
B. the opportunity cost of college is very high for them.
C. the benefits of additional college exceed the costs of additional college for them.
D. the decision not to finish college is irrational.
B. the opportunity cost of college is very high for them.
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Which of the following is likely to happen during a boom?
A) The Fed will increase the federal funds rate. B) The Fed will lower the federal funds rate. C) The Fed will increase the supply of money. D) The Fed will lower the reserve requirement.
The income-expenditure model assumes that the aggregate supply curve is horizontal at a given price level
Indicate whether the statement is true or false
In the figure above, if point "a" represents the original equilibrium and point "b" the new equilibrium, then
A) there has been an increase in supply. B) there has been an increase in demand. C) there has been a change in the quantity supplied and no change in supply. D) Both answers B and C are correct. E) Both answers A and B are correct.
Samuelson and Solow reasoned that when aggregate demand was low, unemployment was
a. high, so there was upward pressure on wages and prices. b. high, so there was downward pressure on wages and prices. c. low, so there was upward pressure on wages and prices. d. low, so there was downward pressure on wages and prices.