The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time.
B) wage rates rise as the economy reaches full employment.
C) consumers tend to value a good more when they don't have much of it.
D) resources are not equally productive in all output categories.
Ans: D) resources are not equally productive in all output categories.
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Refer to the Article Summary. In 2015, the European Union initiated the BRRD program, where the burden of bailing out troubled banks is being placed on bank creditors, shareholders, and possibly depositors
If this program were to confiscate funds from bank deposits to assist troubled banks, the possibility of a bank run, a situation in which ________, would likely increase. A) a majority of the shareholders in a bank decide to sell off all their shares of stock. B) many depositors simultaneously decide to withdraw money from a bank. C) a bank stops paying interest on all of its interest-bearing accounts. D) a majority of the bank's loans go into default all at once.
(Last Word) Which of the following is true about the effects of ZIRP, QE, and Operation Twist?
A. The massive monetary stimulus created high rates of inflation. B. They were unsuccessful at lowering interest rates. C. By lowering borrowing costs, they encouraged expansion of federal budget deficits. D. Pension plan and retirement fund returns increased dramatically.