When Congressional decision makers chose not to raise taxes to fight the war on terrorism, they
A. borrowed the money, but the opportunity cost still existed in the form of higher interest rates and/or crowding out.
B. showed that borrowed money has no opportunity cost.
C. showed opportunity cost exists by eliminating Social Security.
D. showed that there is no opportunity cost to defense spending when you are required to spend it.
Answer: A
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A) efficient price B) efficient amount C) marginal benefit D) marginal cost
Suppose that the demand curve for apples is downward sloping and the price per bushel increases from $6.50 to $7.50. We would then expect
A) the demand for apples to decrease. B) the quantity of apples demanded to fall. C) the demand curve to shift toward the origin. D) the quantity of apples demanded to increase.