What would be the opportunity cost of a child using a coupon for a free ice cream cone?
a. the dollar cost of the cone she selected
b. the other types of ice cream she could have selected
c. zero - because the good was not a durable good
d. zero - because the good was free
b
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Assuming coffee and cola are substitutes, if the price of coffee rises
A) there is a movement along the demand curve for cola. B) the demand curve for coffee will shift to the right. C) the demand curve for cola will shift to the right. D) the demand curve for coffee will shift to the left.
If the Fed wanted to use all of its policy variables to decrease the supply of money, which of following would that include? a. Increasing its open market sales of government securities. b. Increasing the required reserve ratio
c. Decreasing the interest rate it pays banks on bank reserves. d. It would include all of the above.