The divergence between money costs and opportunity costs is the smallest in which of the following situations?
A. China hires millions of otherwise unemployable workers to build roads using picks and shovels.
B. Wilhelm, a petroleum engineer, is drafted, and his army salary is $1,000 per month.
C. Colleen quits her job to stay at home and raise her children.
D. A university employs a private contractor to build a field house on land it purchased at full market value from a local farmer.
Answer: D
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Suppose the value of the CPI is 1.100 in year one, 1.160 in year two, and 1.270 in year three. Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three. The price level is increasing, the inflation rate is ________, and the relative price of computers is ________.
A. increasing; decreasing B. constant; increasing C. increasing; increasing D. constant; decreasing
A barter arrangement simply means
A) the government has paid for the goods. B) a promise to pay in the future. C) that gold must be offered from one party. D) a direct exchange of goods without the use of money.
Which anti-discrimination law prohibits discrimination by employers on the basis of race, color, religion, gender, or national origin?
A) the Civil Rights Act of 1964 B) the Equal Employment Opportunity Act of 1972 C) the Americans with Disabilities Act of 1990 D) the Rehabilitation Act of 1973
Suppose you use your debit card to buy soda from a soda machine. Which of the following is true regarding the transaction?
A) The debit card is not money; it's only an instruction to make a loan. B) The debit card is money; your use reflects the exchange of a good. C) The debit card is not money; its use is only a tool to cause money to move from your account. D) Your use makes the debit card money, as funds are transferred between your account and the machine owner. E) Using the debit card is like using a check and is, therefore, money.