Answer:
B. Cooking dinner for some friends.
Explanation:
Opportunity cost is the cost of <u>next best alternative</u> sacrifised while choosing an alternative.
Eg- If I like Chapati more than rice, rice more than bread - opportunity cost of chapati is only rice & not bread.
If my preferences are 1 > 2 > 3 ; {'>' implies 'preferred over'}
Then the opportunity cost of my 1st preference i.e going out to movie & dinner is the 2nd best preference i.e Cooking dinner for some friends.
Hamburger at base ball game i.e 3rd preference is opportunity cost of 2nd preference i.e Cooking dinner for some friends.
Answer:
When nominal interest rates cannot be lowered any further.
Explanation:
A liquidity trap occurs when Central Banks fails in its injection of cash into the private banking system to decrease interest rates.
This results in households and businesses maintaining high cash balances and not stimualting aggregate demand.
Answer:
The correct answer is D. Technological changes in the ways workers look for jobs is not a reason why the natural rate of unemployment can change over time.
Explanation:
The fact that workers looking for work change their search methods is not a factor that influences the natural unemployment rate of a given country. This is so because, in any case, this would influence the supply of workers, but not the supply of jobs, which is what ultimately determines the unemployment rate.
In other words, the lower the number of workers looking for work, the unemployment rate does not increase. Unemployment rates increase when what decreases is the number of available jobs.