Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Tammie's trip to the concert is:
a. $450
b. $300
c. $600
d. $500
Answer: c. $600
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An increase in the consumption of a good resulting from a reduction in price that makes the good cheaper in relation to other goods is called the:
a. substitution effect. b. income effect. c. real balance effect. d. inelasticity effect.
Higher interest rates make it:
A. harder to get a loan typically. B. more expensive to borrow. C. less expensive to borrow. D. easier to get a loan typically.
A command-and-control policy:
A. usually does not result in the use of the most efficient pollution abatement technology. B. does not affect the production costs of firms. C. usually finds the most efficient pollution abatement technology. D. increases the incentive for firms to develop efficient abatement technologies.
The beginning of antitrust law is found in the
A) 1914 Clayton Act. B) 1890 Sherman Act. C) 1947 Taft-Hartley Act. D) 1950 Cellar-Kefauver Act.