During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. The opportunity cost of attending college is higher when unemployment is high.
B. The benefit of attending college is lower because college graduates are less likely to find jobs.
C. The opportunity cost of attending college is lower when unemployment is high.
D. Students go to college even when the net benefit is negative.
Answer: C
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Use of bovine growth hormone (BGH) on cattle dramatically increases the milk output of dairy cows. Dairy farmers in Wisconsin vigorously oppose permitting the drug’s use over concerns of an excess supply and a consumer reaction on the purity of food issue that could put many of them out of business. Which of the graphs in Figure 4-13 is consistent with these concerns?
A. 1 B. 2 C. 3 D. 4
The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will shift the aggregate demand curve to the left. B) This will move the economy up along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the right. D) This will move the economy down along a stationary aggregate demand curve.
The M2 monetary aggregate contains everything that is in M1 plus other assets that are highly ________ (can be turned into cash quickly at very little cost)
A) liquid B) stable C) consistent D) efficient
When the production possibilities curve is a straight line, the opportunity cost of producing more of one good must be equal to the opportunity costs of producing more of the other good
Indicate whether the statement is true or false