As the term “opportunity cost” is defined in the text, the opportunity cost of going to college includes
A. both tuition and the value of the student’s time.
B. tuition but not the value of the student’s time, which is a cash cost.
C. the value of the student’s time but not tuition, which is a monetary cost.
D. neither tuition nor the value of the student’s time, since obtaining a college degree makes one’s income higher in the future.
E. neither tuition nor the value of the student’s time, at least at subsidized state universities.
Answer: A
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The degree to which monetary forces are the cause of aggregate demand instability is the major controversy between
a. classicists and Keynesians. b. monetarists and new classical economists. c. real business cycle theorists and classicists. d. monetarists and Keynesians. e. None of the above
In a market where the equilibrium price is $7, any price higher than $7 would cause
a. a balanced demand and supply b. an excess supply c. an excess demand d. none of the above
Which is a correct statement?
A. Cyclical unemployment is also called wait unemployment because this unemployment depends on the timing of the business cycle. B. Frictional unemployment is the result of frictions between labor and management over how best to perform work. C. Structural unemployment results from changes in the structure of consumer demand or technology. D. Search unemployment is the broadest unemployment category because it covers all other types of unemployment.
If each firm depicted in Table 9.5 is currently generating 1,000 gallons of wastewater per day, Firm B would be willing to pay up to ________ to Firm A to be able to generate 2,000 gallons of wastewater per day.
A. $15 B. $20 C. $35 D. $120