Answer:
The correct answer is that Mark's opportunity cost of holding cash is higher
Explanation:
Opportunity cost is nothing but the value of the next best alternative that a person has given up , when that person had the choice of selecting between any number of options. You will not find this cost to be shown in your financial statements or balance sheets but this cost is very important in telling which option is the best to use or more profitable for a person or company.
In this question the reason why Mark uses ATM more frequently is because for him the opportunity cost for him in holding more money in hand is high as compared to the Jim whose opportunity cost of holding more money in hand is less , which means he is not not going to miss out on much of the opportunity. The reason why the opportunity cost is high for Mark is because of high rate of interest in his country , if Mark holds more money in hand then the amount of money he is going to lose on interest that he would have gained by keeping the money in bank will be high which means his opportunity cost of holding money is high.
Answer:
The correct option is c
Explanation: see the picture attached
Answer:
Savings and loan association
Explanation:
Answer:
C
Explanation:
In economics, when the word Marginal is mentioned, it refers to additional, as in one extra unit.
For example when we hear marginal revenue, it means the revenue gotten from selling an additional unit, when we hear or speak of marginal cost, it is the cost of producing or getting one more unit.
Propensity is a tendency, an inclination to do something.
So adding the three words together, marginal propensity to consume will be the tendency or inclination to consume one extra unit as a result of earning extra income.
Hence (MPC) is the fraction of extra income consumed.
I hope the concept is clearer.
