One of the initial problems facing the newly elected President Clinton was a large budget deficit.

When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the ________ of the option chosen

A) opportunity cost B) comparative advantage C) nonmonetary cost D) absolute advantage

Isabel purchases a $1,000 face value one-year Treasury bill for $934.58, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 9%

If Isabel decides to sell her Treasury bill to another investor the day after she purchased it, she will A) receive a capital gain of $28.04. B) receive a capital gain of $7.76. C) suffer a capital loss of $18.69. D) suffer a capital loss of $17.15.