The opportunity cost of constructing a new public highway is the:
A. Money cost of hiring contractors and construction workers for the new highway
B. Value of other goods and services that are sacrificed in order to construct the new highway
C. Expected cost of constructing the new highway in a future year
D. Value of shorter driving times and distances when the new highway is completed
Answer: B
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According to the text, minimum-wage laws cause increases in
A) productivity. B) employment possibilities. C) poverty. D) structural unemployment.
Suppose a hefty rise in the demand for Mexican pesos create a chronic shortage of this currency in the foreign exchange market. Which of the following steps should be adopted by the Mexican government to eliminate this shortage?
a. The government should impose a ban on Mexican exports. b. The government should devalue the peso. c. The government should print more pesos to increase its supply. d. The government should allow the peso to appreciate. e. The government should allow the peso to depreciate.