Suppose you have saved $300 . You can spend it on a new stereo or on a weekend skiing trip. What is the opportunity cost of going on the skiing trip?
What will be an ideal response?
The opportunity cost of the skiing trip is the value of the next best alternative for using the $300 you have saved. If the next best alternative is purchasing the stereo, then the opportunity cost of going skiing is the enjoyment foregone by not purchasing the stereo.
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An increase in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield of Treasury bonds, everything else held constant
A) increase; increase B) reduce; reduce C) increase; reduce D) reduce; increase
Explain the problem encountered by successive monopolies? How can the supplier and the producer overcome this problem?
Gerald earns a higher salary than his brother Peter because Gerald went to law school and is a lawyer, whereas Peter dropped out of college to work as a mechanic. The difference in salary illustrates a compensating differential
a. True b. False Indicate whether the statement is true or false
Financial markets are
A) markets where money is traded between the Fed and economic agents. B) markets where funds accumulated by one group are made available to another group. C) banks interact to lend and borrow reserves. D) the market where capital goods are traded.