Treasury Bills

question 21

Multiple Choice

Treasury bills

• A)sell at a discount
• B)sell for a premium
• C)pay an established 4.5% annual interest
• D)mature after one year

---

Definitions:

Opportunity Cost

The forgone value of what you give up when you make a choice.

Total Output

The aggregate quantity of goods and services produced within an economy over a specific period, reflecting the economy's overall productivity.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than another.

Absolute Advantage

The ability of a country to produce a good at a lower cost than its trading partners.