If You Kept Your Money Under Your Mattress Rather Than

question 208

Multiple Choice

If you kept your money under your mattress rather than keeping it in a savings account at your local bank,

• A)you would not incur an opportunity cost.
• B)the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account.
• C)the opportunity cost of such an action would be the gas money it took to drive to the bank.
• D)None of the choices are true.

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Definitions:

Inflation

An increase in the general level of prices of products in an economy over a period of time.

Federal Commerce Commission

Likely referring to the Federal Trade Commission, a U.S. federal agency tasked with protecting consumers and promoting competition.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers are protected against unfair practices by businesses.

Income Distribution

The way in which a nation’s total GDP is distributed amongst its population, affecting economic inequality.