Answer:
It means movies are relatively cheaper than working hours
Explanation:
In order to estimate the relativity of the two activities, there is a need to compare the changes over ten years
1. 10 years ago, Movie ticket= $5, 10 Years later Movie ticket= $8, the 10 year difference is $3
2. 10 years ago, average hourly wage = $10, 10 years later, average hourly wage = $20, the 10 year difference is $10
First, it means for the $3 change in movie ticket cost, there was a $10 change in the average hourly wage.
Put differently, while movie ticket got a 60% increase in price 3/5 x 100=60%
Average hourly wage got 100% increase 10/10 x 100= 100%
It means that working hours got more expensive and movie tickets got cheaper
Answer:
a. amount of the other good that must be given up.
Explanation:
The mix of two goods or services can be accomplished in the frontier of production possibilities when all available resources and technologies are fully efficient and used. This indicates a mix of the two resources to a maximum.
As we know that, the opportunity cost refers to the cost in which the best alternative is chosen among the available ones which can generate a better return so the one goods are considered while another cost is given up.
Answer:
2. False
Explanation:
The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.
In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.
Answer:
trying to evaluate the situation from all diff perspectives
<span>The velocity of money is not the money supply divided by nominal gdp, nor the long-term growth rate of the money supply. It is not the rate at which the fed puts money in the economy but it is the average number of times per year a unit of money (dollar) is spent. </span>