Spending money on a new car instead of a used car when you are on a fixed budget is an example of:
A. the incursion of an opportunity cost.
B. isolating variables.
C. a bad thing to do because you run out of money.
D. living on the edge.
Answer: A
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A decrease in the price level in the United States will have what effect on the aggregate expenditure line?
A) Aggregate expenditure will shift downward. B) Aggregate expenditure will shift upward. C) Aggregate expenditure will become steeper. D) Aggregate expenditure will not be affected by a decrease in the price level in the United States.
A stockholder who owns 1,000 shares of the corporation’s 100,000 shares is entitled to what percentage of the vote in an election of corporate officers?
A. 1 percent B. 2 percent C. 5 percent D. 10 percent
Which of the following is always wrong, regardless of what other information may be given to you?
a. Hiring a worker when her marginal physical product is decreasing. b. Hiring a worker when her marginal physical product is positive. c. Hiring a worker when her marginal physical product is increasing. d. Hiring a worker when her marginal physical product is negative. e. Hiring a worker when her MRP > W.
Wilson can produce a maximum of 18 FBs (footballs) or 6 VBs (volleyballs). Spalding can produce a maximum of 32 FBs or 8 VBs. Assume a linear production possibilities frontier for each. Which of the following opportunity cost (OC) values is true?
a) Spalding's OC of producing 1 more FB = 4 VB. b) Spalding's OC of producing 1 more VB is 1/4 FB. c) Wilson's OC of producing 1 more FB = 3 VB. d) Wilson's OC of producing 1 more VB = 3 FB. e) C and D.