Arlene quits her $125,000-a-year job to take care of her ailing parents. What is the opportunity cost of her decision?
A) zero, since she will no longer be earning a salary
B) It depends on the "going rate" for home-care providers.
C) at least $125,000
D) the value she attributes to the satisfaction she receives from taking care of her parents
Answer: C
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What will be an ideal response?
If the structural deficit is zero,
A. If the economy goes above full employment, the cyclical deficit will get larger. B. At full employment, the budget is balanced. C. Federal tax revenue equals federal government expenditures at any equilibrium GDP. D. If the economy enters a recession, a budget surplus will result, ceteris paribus.
Why is there often resistance to free trade?
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The rising portion of a perfectly competitive firm's marginal cost curve, above the intersection with AVC, is its
A) demand curve. B) economic profit. C) supply curve. D) accounting profit.