Suppose that consumers decide to save less and spend more. What effect would this have in the market for loanable funds?
A. It will decrease interest rates and the quantity of funds lent will rise.
B. It will decrease interest rates and the quantity of funds lent will fall.
C. It will increase interest rates and the quantity of funds lent will fall.
D. It will increase interest rates and the quantity of funds lent will rise.
Answer: C
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In the above figure, Jack's opportunity cost of producing 1 gallon of bottled water is ________ of soda
A) 2 gallons B) 1/2 of a gallon C) 6 gallons D) 1/4 of a gallon E) 1 gallon
Which of the following statements is false?
A) An implicit cost is a nonmonetary opportunity cost. B) Economic costs include both accounting costs and implicit costs. C) An explicit cost is a cost that involves spending money. D) Economists consider all costs to be implicit costs.