An individual rents an apartment for $200 per month. His monthly opportunity cost of commuting to work from this apartment is $50. After a year, he moves to an apartment closer to his place of work, but pays $250 as rent
Compared to the initial situation, after a year: A) his direct cost of renting the apartment increases, while the indirect cost of renting the apartment remains unchanged.
B) his direct cost of renting the apartment increases, while the indirect cost of renting the apartment decreases.
C) his direct cost of renting the apartment remains the same, while the indirect cost of renting the apartment decreases.
D) his direct cost of renting the apartment remains the same, while the indirect cost of renting the apartment increases.
B
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When the average price level falls, interest rates fall, which increases the consumption of certain goods and services. This sequence of events describes the _______ _______ _______.
Fill in the blank(s) with the appropriate word(s).
Everything else equal, as increase in investment in physical and human capital will mean lower living standards in the present, because the opportunity cost of investment is foregone consumer goods
a. True b. False
If two goods are considered complements and the price of one decreases then the other good's
A. supply curve will shift to the left. B. supply curve will shift to the right. C. demand curve will shift to the left. D. demand curve will shift to the right.
Refer to the figure below. What is the Nash equilibrium of this game?
A. A chooses Down, B chooses Right B. A chooses Up, B chooses Right C. A chooses Down, B chooses Left D. A chooses Up, B chooses Left