Question

Kayden decided to attend college and gain a degree in accounting. He is now starting his degree. The yearly cost of tuition is $10,000 and he left his auto mechanic shop management job giving up a $32,000 a year to attend college. Kayden’s decision resulted in

an opportunity cost to attend college of $22,000 per year.

an opportunity cost to attend college of $42,000 per year.

paying $10,000 in opportunity cost per year to attend college.

Congress must vote whether to increase the government budget so as not to shut down the government this year. The vote passed and the budget ceiling has been increased to keep the government running. This is an example of what type of policy?

microeconomic monetary policy

macroeconomic monetary policy

macroeconomic fiscal policy

Answer 1

1.

B

It is the opportunity cost that is = 32000 + 10000 = $42000

2.

C

Increasing government budget to extend the spending is called as fiscal policy that is macro in nature.