Molly just graduated from high school. The figure shows her possibilities frontier. If Molly goes to college, she will move from point M to point K. In terms of consumption goods, Molly's opportunity cost of going to college is
A) MK.
B) OL.
C) KL.
D) LM.
D
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Which of the following is a fixed cost in a pizza restaurant?
a. rent b. produce purchases c. hourly labor charges d. delivery expenses
According to the Keynesian aggregate expenditures model equilibrium and full employment:
a. always occur at the same income level of real GDP. b. may differ, but there is an automatic mechanism that directs the economy toward full-employment equilibrium. c. could never occur at the same level of real GDP. d. do not necessarily occur at the same level of real GDP.
Government often finds it difficult to cope with externalities because
A. costs and benefits are difficult to assess in monetary terms. B. taxes and subsidies are ineffective in equating MSC and MSB. C. government has no authority to impose fines for air and water pollution. D. marginal private cost curves cannot be shifted.
If the demand for illegal drugs is inelastic, then a government policy that causes illegal drug price to rise would cause those who support their drug habit by property theft to:
A. increase their theft to pay for their drugs. B. increase their drug dependency. C. reduce their theft to pay for their drugs. D. end their drug dependency.