Gregory is considering attending a concert with a ticket price of $40. He estimates that the cost of driving to the concert and parking there will add an additional $20
In order to attend the concert, Gregory will have to take time off from his part-time job. He estimates that he will lose 5 hours at work, at a wage of $8 per hour. Gregory's opportunity cost of attending the concert equals A) $80.
B) $100.
C) $40.
D) $60.
E) $20.
B
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Where the consumption function intersects the 45-degree line
A) consumption will equal only autonomous consumption. B) the average propensity to consume is 0.5. C) savings will be negative. D) saving will be zero.
Irrespective of the market structure, a firm maximizes profit at the level of output where the price of its product equals its marginal cost
a. True b. False Indicate whether the statement is true or false
Potential buyers of ABC Corporation bonds are concerned about ABC Corporation declaring bankruptcy. Potential buyers of XYZ Corporation bonds are not concerned that XYZ Corporation may declare bankruptcy. Which of the following statements is correct?
a. Other things equal, the interest rate on XYZ Corporation bonds will be high relative to the interest rate on ABC Corporation bonds. b. An ABC Corporation bond must have a longer term than an XYZ Corporation. c. XYZ Corporation bonds carry less default risk than do ABC Corporation bonds. d. All of the above are correct.
All of the following will increase the demand for labor by firms in an industry except
A. an increase in the price of the product produced by the industry. B. a decrease in the prices of inputs that substitute for labor. C. an increase in the marginal product of labor resulting from technological change. D. an increase in the demand for the product produced by the industry.