Interest is most fundamentally a measure of
A) the cost of money.
B) the scarcity of money.
C) the greater subjective value of present over future goods.
D) all of the above.
E) none of the above.
Question 2
According to opportunity-cost theory, if more people learned how to repair their own automobiles, the wages of automotive mechanics would
A) decline as the highest-cost mechanics left the business.
B) decline, because the marginal quality of the services provided would go down.
C) not change because no change has occurred in demand or supply.
D) rise, because mechanics would have to obtain more per hour to maintain their incomes.
E) rise in order to compensate for the smaller demand.
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