You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. Should you go see a movie or work as a math tutor?
A. You should work as a math tutor.
B. You should do neither
C. You should go to the movies.
D. Both options are equally good.
Answer: A
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When the central bank ________ the money supply, the LM curve shifts to the right, interest rates ________, and equilibrium aggregate output ________, everything else held constant
A) increases; fall; increases B) increases; rise; decreases C) decreases; rise; decreases D) decreases; fall; increases
The difference in present value between a perpetuity that promised $1 per year starting today and one that promised $1 per year starting next year is
a. 0. b. $1. c. $1/(1 + r). d. $r/(1 + r).
Consumer surplus equals the quantity supplied minus the quantity demanded
a. True b. False Indicate whether the statement is true or false
Any restriction of international trade that is accomplished by a quota can also be accomplished by a tariff
a. True b. False Indicate whether the statement is true or false