Babe Ruth, the famous baseball player, earned $80,000 in 1931 . Today, the best baseball players can earn more than 400 times as much as Babe Ruth earned in 1931 . However, prices have also risen since 1931 . We can conclude that
a. the best baseball players today are about 400 times better off than Babe Ruth was in 1931.
b. because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.
c. one cannot make judgments about changes in the standard of living based on changes in prices and changes in incomes.
d. one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931.
d
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The construct used to demonstrate efficient use of society's resources is the
a. production possibilities frontier. b. payoff matrix. c. input-output table. d. cost-benefit table.
How did the gold standard contribute to the spreading of the Great Depression of the 1930s?
What will be an ideal response?
The property of money that allows for the settling of debts that mature in the future is
A. standard of deferred payment. B. acceptability. C. liquidity. D. store of value.
Arlene quits her $125,000-a-year job to take care of her ailing parents. What is the opportunity cost of her decision?
A) zero, since she will no longer be earning a salary B) It depends on the "going rate" for home-care providers. C) at least $125,000 D) the value she attributes to the satisfaction she receives from taking care of her parents