High opportunity costs go hand in hand with high money costs in a properly functioning economy
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Mary is a low-risk applicant for a loan at a bank, while John is a high-risk applicant. If the bank increases the interest rates it charges on loans, _____
a. John is likely to leave the market for loans b. the problem of moral hazard will prevent John from getting a loan c. the commons problem will prevent Mary from getting a loan d. Mary is likely to leave the market for loans e. both Mary and John will leave the market for loans
Suppose Tracy will get $500 from her parents when she graduates from college two years from today. If the market interest rate is 8 percent, then what is the present value of that $500?
a. $359.12 b. $428.67 c. $462.96 d. $483.11
Say a study reveals that price elasticity of demand for teenage smoking was -0.5. If the government imposed a tax on cigarettes the total expenditure teenagers spend on buying cigarettes would
A. decrease. B. stay the same. C. increase. D. we can't answer with the information given.
In the ________, the perfectly competitive firm will react to losses by __________________________.
a. short run; reducing production or shutting down b. long run; reducing production or shutting down c. short run; increasing physical inputs d. long run; increasing capital inputs