A Production Possibilities Frontier (PPF) always slopes down to represent the concept of opportunity cost, and it sometimes is bowed out. The PPF can be bowed out, because… i. the opportunity cost of each good is decreasing. ii. the opportunity cost of each good is increasing. iii. not all resources are equally suited to produce each good.  

Miguel has additional free time this evening. He ranks his alternative ideas for what to do during that free time: first go swimming, second go on a date, and third watch one of Professor Rush’s lectures. He can only do one of these activities. What is Miguel’s opportunity cost of going swimming?

If commercial banks hold reserves of $5 million and deposits in these banks are $250 million, which of the following statements is true? Hint: Assume the bank does not hold insufficient reserves.

Reducing the Capital Gains Tax leads to a(n) ____ in the real interest rate, and a(n) ____ in investment spending.

Both buyers and sellers of gasoline come to expect that the price of a gallon of gasoline will fall next week. As a result, …

Which of the following is NOT a function of depository institutions in the financial system?

A tariff is a tax on ______ that ______ the quantity of the good that is traded and ______ consumer surplus.

Refer to the figure above. Suppose that the world price of a snowboard is $40. Compared to the no-trade equilibrium, consumer surplus decreases by ______.

A decrease in the demand for Argentine exports from abroad should ____.

Refer to figure above. How much tax revenue is generated by the necktie tax?