Suppose that your tuition to attend college is $14,000 per year and you spend $5,000 per year on room and board. If you were working full time, you could earn $26,000 per year. What is your opportunity cost of attending college?

Suppose the Fed conducts an open market operation in which it buys government securities from a commercial bank. Why is there a multiplier effect on the quantity of money?

What will be an ideal response?

One of the opportunity costs of economic growth is

A) capital accumulation. B) technological change. C) reduced current consumption. D) the gain in future consumption.