If the interest rate is above its equilibrium value, the price of
a. bonds will fall
b. real estate will rise
c. bonds will rise
d. stocks will fall because of fluctuations in the bond market
e. money will rise
C
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If you discover that the opportunity cost of raising your economics grade is zero, you
A. are studying too hard and receiving a higher grade than is optimal for you. B. must be on the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. C. must be inside the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. D. must be producing more of other goods than is optimal for you.
Economic theory assumes people will not do what is in the interest of all unless it is in the interest of
A) each. B) humanity. C) the government. D) the public. E) their own pocketbooks.
The demand curve for petroleum should be
A) more elastic in the long run than in the short run. B) less elastic in the long run than in the short run. C) as elastic in the long run as it is in the short run. D) more or less elastic in the long run versus the short run depending upon supply conditions.
For a monopsonist in the labor market, the marginal resource cost of labor is:
A. Higher than the wage rate or price of labor B. Less than the wage rate or price of labor C. Equal to the wage rate or price of labor D. Inversely related to the wage rate or price of labor