You won a free ticket to see the latest Star Trek movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Trek movie on Friday?
A. $30
B. $35
C. $50
D. $0
Answer: B
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A consumer has $20 that he wants to spend on two goods: pens priced at $2 each, and pencils priced at $1 each. Which of the following correctly represents his budget constraint?
A) $20 = ($2/Quantity of pens) + ($1/Quantity of pencils) B) $20 = ($2 × Quantity of pens) + ($1 × Quantity of pencils) C) $20 = ($3/Quantity of pens + Quantity of pencils) D) $20 = $3 × (Quantity of pens - Quantity of pencils)
Explain why the marginal propensity to save and the marginal propensity to consume sum to 1
Taking into consideration indirect stock ownership in the United States, we can conclude that
a. stock ownership is on the decline b. the majority of the population are stockholders c. all businesses are in fact corporations d. too much cheating is going on in the stock market e. we should change the laws so that pension funds can buy stocks
The poverty gap is the
a. absolute number of people below the international poverty line. b. percentage of the population below the international poverty line. c. consumption (measured in dollars) necessary to bring everyone living below the poverty line up to the poverty line. d. percentage of a country's total consumption necessary to bring everyone in the country living below the poverty line, up to the poverty line.