If the Fed set and achieved a goal of zero unemployment,
A) the inflation rate would increase.
B) real GDP would equal potential GDP.
C) they would have an easier time achieving the goal of price stability.
D) the natural rate of unemployment would be negative.
A
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One is ________ likely to invest in human capital the ________ the person's rate of time preference
A) most; higher B) less; lower C) more; lower D) least; lower
An agribusiness firm may undertake three alternatives: buy cane sugar and manufacture various sugars and sweets, making a profit of $12 million; buy corn and produce ethanol, making a profit of $16 million; or buy wheat and produce breads, rolls, and
pastries, making a profit of $13 million. The opportunity cost associated with these three choices is A) $4 million. B) $3 million. C) $13 million. D) $16 million.