Some college students think that because a college degree greatly increases their earning potential there is no opportunity cost of attending college. How would an economist look at the matter?
a. There is no opportunity cost, assuming that future earnings actually increase as expected.
b. The opportunity cost is much less than it would appear, assuming that earnings increase.
c. Opportunity cost is a meaningless concept in this situation.
d. The college students are completely correct in all respects.
e. There is still an opportunity cost, even if it is justified by higher future earnings.
e
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If the price level is 100 in one year and rises to 102 the next year, then the inflation rate is
A) 0.02 percent. B) 100 percent. C) 102 percent. D) 2.0 percent. E) unable to be determined without knowing potential GDP.
Refer to Figure 2-4. A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor
A) Y to X B) W to X C) V to W D) X to W