You have the option of consuming one cup of coffee or two donuts or three oranges. You picked the cup of coffee. Therefore the opportunity cost of this cup of coffee is
A) the price of the cup of coffee.
B) the difference in the prices of these three products.
C) the price of the donuts as they are usually consumed with coffee.
D) either the donuts or the oranges, whichever you like more.
D
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Crowding out refers to the situation in which:
a. foreigners sell their bonds and purchase U.S. goods and services. b. borrowing by the federal government raises interest rates and causes firms to invest less. c. increased federal taxes to balance the budget causes interest rates to increase and consumer credit decreases. d. borrowing by the federal government causes state and local governments to lower their taxes.
For the highest quintile, the share of market income going to that quintile is
A. higher for after-tax income than for before-tax income. B. lower for after-tax income than for before-tax income. C. equal to the other quintiles for after-tax income but greater for that quintile for before-tax income when compared to the other quintiles. D. greater for that quintile for after-tax income when compared to the other quintiles but equal to the other quintiles for before-tax income.