Question

can you answer these questions

Which best describes an opportunity cost?

accepting an opportunity to do something else when making an economic decision
giving up an opportunity to do something else when making an economic decision
accepting an opportunity to help accomplish something else when making an economic decision
giving up an opportunity to increase prices when making an economic decision

Market performance in the United States is tracked using stock
, which use formulas to calculate price changes.

Economists use changes in GDP to measure

the balance of trade with other countries.
any economic growth or shrinkage.
the causes of unemployment.
the distances between cities.

Which best describes why a company issues stocks?

to increase the company’s value
to ensure profits
to increase dividends
to raise capital

The graph below shows the value of the US dollar versus the Canadian dollar.

A graph titled Value of U S Dollar versus Canadian Dollar has month on the x-axis, from October 2012 to March 2013, and Canadian Dollars per U S Dollar on the y-axis, from 0.96 to 1.04. A line is drawn to connect the points on the graph. The line is at the lowest point in October, and it is the highest in March.

According to the graph, the American dollar was the strongest during which month?



October 2012.
November 2012.
February 2013.
March 2013.

Answer 1

1) Giving up an opportunity to do something else when making an economic decision.
- (Opportunity cost = the next-best alternative you give up.)

2) Stock indexes (or indices).
- (Indexes use formulas to track price changes across many stocks.)

3) Any economic growth or shrinkage.
- (Changes in GDP measure overall economic expansion or contraction.)

4) To raise capital.
- (Issuing stock brings in funds from investors.)

5) March 2013.
- (The USD was strongest when it bought the most Canadian dollars — the highest CAD per USD.)