Couple of Other Economics Questions - Quickies once again
 

The law of opportunity cost stats that:

a. as cost increases, people buy less of a good.
b. consumption and opportunity cost are inversely related.
c. the more of something that is produced, the greater the opportunity cost of producing an additional unit.
d. the more of something that is produced, opportunity cost falls.
e. as production of one good increases, we must give up some of another good.


2. An issuer of bonds is

a. a borrower of funds.
b. buying part ownership of a firm
c. a lender of funds.
d. making a long term loan to the buyer.


Again, I'm not trying to get you to do my homework, especially as these questions are relatively questions, but I just need to reassure. Thanks.

Re: Couple of Other Economics Questions - Quickies once again
 

1. I'm thinking E.

2. A

Re: Couple of Other Economics Questions - Quickies once again
 

For 2, wouldn't it be a lender of funds, cause when you issue a bond, you're basically loaning them 1000 dollars and giving them interest?

Re: Couple of Other Economics Questions - Quickies once again
 

when you issue you a bond you give them a note and they give you money

Re: Couple of Other Economics Questions - Quickies once again
 

When you issue bonds, you are borrowing money from people.

If I wanted to build a new business, I would sell bonds to raise capital. People would invest in my bonds and I would be borrowing money from them in return for repayment of interest and the original investment in a set period of time.

Re: Couple of Other Economics Questions - Quickies once again
 

gah, dunno why I had it backwards.

For 1, aren't both (c) and (e) both logical options?

Re: Couple of Other Economics Questions - Quickies once again
 

[ QUOTE ]

For 1, aren't both (c) and (e) both logical options?

[/ QUOTE ]

Why would the question and answer both have "opportunity cost" in it if it is asking you what the law of opportunity cost is?

Re: Couple of Other Economics Questions - Quickies once again
 

1. E 100% as i had a test on it today and got that question right

Re: Couple of Other Economics Questions - Quickies once again
 

[ QUOTE ]
[ QUOTE ]

For 1, aren't both (c) and (e) both logical options?

[/ QUOTE ]

Why would the question and answer both have "opportunity cost" in it if it is asking you what the law of opportunity cost is?

[/ QUOTE ]

Also, just FYI, (c) is stating *something* like in increasing (or decreasing) returns to scale, though to be accurate, it would have to talk about cost, not opportunity cost if it were about returns to scale. That's probably why it's a good distractor, it sounds like something you've heard before that sounds somewhat plausable.

Re: Couple of Other Economics Questions - Quickies once again
 

1e (absolutely sure beyond reasonable doubt)

2a (pretty sure)