Katrina pays $40 for a meal at a fancy restaurant. The ingredients used cost $10 . The value added by the restaurant is _____
a. $30
b. $40
c. $70
d. $40 plus the wages paid to the chef and waiters
e. $40 plus the profit earned by the restaurant owner
b
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
If a firm has market power it may be able
A) to protect market share. B) to continue to earn economic profits. C) minimize marginal costs. D) to maximize total revenue.
Here are three things you could do if you do not attend your economics class: watch television with some friends (you value this at $25), read a good novel (you value this at $13), or go in to work (you could earn $20 during the economics class). The opportunity cost of going to your economics class is
A) $20, because this is the only alternative of the three where you actually receive a monetary payment. B) $13, because this is the lowest valued alternative forfeited. C) $25, because this is the highest valued alternative forfeited. D) $58, because this is the total dollar sum of the alternatives forfeited.
The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward.
B) favorable supply shock, shifting the short-run aggregate supply curve leftward.
C) adverse supply shock, shifting the short-run aggregate supply curve rightward.
D) adverse supply shock, shifting the short-run aggregate supply curve leftward.