John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517What is the lowest price per window that would induce John to spend at least one hour per day cleaning windows?
A. $2
B. $3
C. $1
D. $7
Answer: C
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The primary purpose of patents and copyrights is to
A) protect firms from being taken advantage of by competing firms. B) protect domestic firms from foreign competition. C) provide owners with large profit forever. D) encourage the expenditure of funds on research and development to create new products.
A country's gross national product (GNP) is
A) the value of all final goods and services produced by its factors of production and sold on the market in a given time period. B) the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period. C) the value of all final goods produced by its factors of production and sold on the market in a given time period. D) the value of all final goods and services produced by its factors of production and sold on the market. E) the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period.
Matt has $2000 saved for a trip at Spring Break. Over Christmas break he decides to spend $400 of it on gifts instead of putting the gifts on his credit card, thus avoiding interest charges. He gradually replaces it in his savings account over the next two months. An economist would say this behavior is:
A. rational. B. irrational. C. utility minimizing. D. not observable.
A major difference between social insurance and income assistance programs is that
a. social insurance programs are run by the states and income assistance programs are run by the federal government b. funding for social insurance programs comes exclusively from the federal government, whereas income assistance programs are funded both at the state and federal levels c. benefits from social insurance programs are related to a worker's contributions to the programs, whereas benefits from income assistance programs are not d. social insurance programs are available only to households with children e. income assistance programs are available only to households without children