Applications to MBA programs rose during the economic downturn in 2008. This is best explained by:
A) The opportunity cost of attending an MBA dropped for most applicants due to poor job prospects.
B) More teachers were available to teach MBA classes due to the lower opportunity cost of teaching.
C) The explicit costs of attending an MBA program fell in 2008.
D) The implicit costs of attending an MBA program rose in 2008.
Question 2
Government borrowing may crowd out borrowing by private interests because
A) funds are not available at any interest rate.
B) the equilibrium interest rate increases.
C) the supply curve shifts to the left.
D) None of the above.
