If you kept your money under your mattress rather than keeping it in a savings account at your local bank,
A. you would not incur an opportunity cost.
B. the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account.
C. the opportunity cost of such an action would be the gas money it took to drive to the bank.
D. None of the choices are true.
B. the opportunity cost of such an action would be the forgone interest of not putting the
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There are few laws in economics. One is this: "As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases.". This is known as the law of
a. demand b. diminishing total utility c. diminishing marginal utility d. diminishing marginal returns e. total utility
A monopolist is best described as a price
A. taker. B. searcher. C. maker. D. follower.
Which of the following contributed to the dramatic rise in housing prices between 2002 and mid-year 2006?
a. government policy made credit for housing abundant and easily available b. the Fed's restrictive monetary policy, which led to high interest rates c. the tightening of loan standards by commercial lenders d. the large amounts of reserves and equity capital being held by financial institutions in order to back new mortgages
If there were no fractional reserve banking, then:
A. banks would not create money in the economy. B. banks would not be able to create as much money as they desired. C. the reserve ratio must be 0 percent. D. there would be a very small amount of lending using deposits.