The price of an hour of leisure time is:
A. the income that could have been earned in that hour.
B. zero.
C. the minimum wage rate.
D. determined by the value of the activity the person engages in during that hour of leisure.
Answer: A
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The emphasis on the greater incentives to produce, created by lower taxes, has come to be known as:
a. the trickle-down economics. b. the supply-side economics. c. the paradox of thrift. d. the permanent income hypothesis. e. monetarism.
Which of the following is correct?
a. Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced. b. Equality can be judged on positive grounds whereas efficiency requires normative judgments. c. Efficiency is more difficult to evaluate than equality. d. Equality and efficiency are both maximized in a society when total surplus is maximized.
Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is
a. common technological knowledge. b. common, but not technological, knowledge. c. proprietary technological knowledge. d. proprietary, but not technological, knowledge.
The benefit of holding money is ________, while the opportunity cost of holding money is ________.
A. the nominal interest rate; the fees charged by banks B. increased income; lost purchasing power C. its usefulness in carrying out transactions; the nominal interest rate D. the nominal interest rate; its usefulness in carrying out transactions