Question $16(2$ points$)$

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In January, in an attempt to commit to getting fit, I signed a year$-$long, binding contract at a local gym, agreeing to pay $$40$ per month in membership fees. I also spent $$300$ on extremely stylish gym clothes. This morning, I was trying to decide whether or not to actually go to the gym. Which of the following was relevant to this decision?

Question $16$ options:

A$.$ The $$40$ that I paid the gym this month.

B$.$ The $$300$ I spent on gym clothes.

C$.$ The fact that I also had to sit for a midterm exam today.

D$.$ The money I spent on phone calls.

Question $17(2$ points$)$

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Which of the following provides an example of complementary goods?

Question $17$ options:

A$.$ Pepsi and Coca$-$Cola

B$.$ French fries and ketchup

C$.$ Milk and orange juice

D$.$ Chicken and fish

Question $18(2$ points$)$

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To counteract a recession, the Central Bank should

Question $18$ options:

A$.$ raise the reserve requirement and the discount rate

B$.$ sell securities on the open market and raise the discount rate

C$.$ sell securities on the open market and lower the discount rate

D$.$ buy securities on the open market and lower the discount rate

Question $19(2$ points$)$

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Select the group that best represents the basic factors of production.

Question $19$ options:

A$.$ land, labour, capital, entrepreneurship

B$.$ land, labour, money, management skills

C$.$ land, natural resources, labour, capital

D$.$ land, labour, capital, technology

Question $20(2$ points$)$

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A business will want to borrow to undertake an investment project when the rate of return on that project is:

Question $20$ options:

A$.$ lower than the interest rate

B$.$ higher than the interest rate

C$.$ higher than the exchange rate

D$.$ equal to the inflation rate