What is the opportunity cost of holding money?
What will be an ideal response?
The opportunity cost of holding money is the nominal interest rate.
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Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?
A) 3/8 of a ton of pineapples B) 2/3 of a ton of pineapples C) 1 1/2 tons of pineapples D) 100 tons of pineapples
Which of the following best illustrates the concept of derived demand?
a. A decrease in the price of glass causes the demand for plastic to decrease. b. An increase in the demand for bread leads to an increase in the demand for flour. c. A decrease in the price of air travel leads to an increase in the quantity demanded of air travel. d. An increase in the demand for peanut butter leads to an increase in the demand for jelly.
When you use money to purchase groceries, money is functioning as a store of value.
Answer the following statement true (T) or false (F)
Refer to Figure 19.2. Diminishing marginal utility begins after
A. The third apple. B. The fourth apple. C. The first apple. D. The fifth apple.