Related to the Economics in Practice on Page 3: According

question 62

Multiple Choice

Related to the Economics in Practice on page 3: According to the Economics in Practice, when rains in rural India are plentiful, the opportunity cost of having someone out of the labor force, and therefore unable to work in agricultural production,

• A) increases.
• B) decreases.
• C) remains unchanged.
• D) is zero, because the person is out of the labor force.

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Definitions:

American System

A historical economic plan in the United States that advocated for a strong role for federal government in the economy, emphasizing protective tariffs, national bank, and infrastructure improvements.

Federal Funds

Refers to reserves that banks lend to each other overnight to maintain their reserve requirements, often influencing interest rates.

Private Funds

Financial resources raised from non-governmental sources, used for investment or other private enterprise.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.