Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are $2,200 . If you worked, you could make $7,000 . Your rent is $1,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is, therefore,
a. $2,200
b. $7,000
c. $8,000
d. $9,200
e. $10,200
D
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A demand curve usually has a
a. negative slope because price and quantity demanded are inversely related b. negative slope because as price rises, demand falls c. positive slope because price and quantity demanded are positively related d. positive slope because price and quantity demanded are inversely related e. slope of zero because there is no change along a demand curve when everything else is held constant
Audrey is a corn farmer. This year the weather was fabulous, and she grew the best crop she has ever grown. Instead of being happy, she is sad because the great weather led to a huge corn surplus, and the price per bushel is much lower than usual. What type of government policy imposed on corn would help Audrey in this case?
a. price ceiling b. price floor c. producer tax d. distributor tax
The four components of aggregate demand include all of the following except
A. Saving. B. Net exports. C. Investment. D. Consumption.
In long-run equilibrium in a monopolistically competitive industry, a firm will
A. have a perfectly elastic demand curve. B. produce at a point to the left of the minimum point on its average total cost curve. C. always earn an economic profit. D. produce an output rate at which P = MC.