Margaret can use her quarterly savings to buy a teakwood study table for her room or spend it on a small Christmas party with her family. The _____ cost of her enjoyment at the Christmas party would then equal the forgone utility of the study table
a. transaction
b. exchange
c. opportunity
d. direct
e. sunk
c
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A head tax applied to each person in the United States would
A. always be proportional. B. not significantly distort incentives to work. C. generally be a progressive tax. D. likely have significant shifting of tax incidence.
When the economy is operating at full employment, the natural unemployment rate consists of only
A) cyclical unemployment. B) frictional and structural unemployment. C) frictional and cyclical unemployment. D) structural and cyclical unemployment.
A decrease in inflationary expectations __________ interest rate
A) raises the natural B) raises the nominal C) lowers the natural D) lowers the nominal
A change in input prices has no impact on the budget line
a. True b. False Indicate whether the statement is true or false