Opportunity cost can best be defined as the
a. value of what must be given up in order to acquire an item.
b. money cost to the buyer to acquire a good or service.
c. total value of all the other items that otherwise could be acquired.
d. cost to the seller to produce an item.
e. time cost to obtain the money to buy an item.
a
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Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not
a. True b. False Indicate whether the statement is true or false
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal
interest rate must: A. rise by 9 percentage points. B. rise by 3 percentage points. C. fall by 3 percentage points. D. rise by 6 percentage points.