"A person's decision to work for pay is a simple cost/benefit question.". Explain this statement
When a person decides to work, there is an opportunity cost associated with that decision. Working an hour for pay means that the person has decided to forego an hour of leisure. If the wage a person earns is higher than the value he or she places on leisure for the same time period, then he or she will choose to work.
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Which of the following is the best example of second-degree price discrimination?
a. A car salesperson's attempts to discover and charge the highest price that the customer is willing to pay. b. A sub shop that gives you a half-price sandwich on every sixth visit. c. Manufacturers' use of discount coupons printed in Sunday newspapers. d. Polaroid cameras and film.
Benjamin works as an economist for the federal government. Which of the following questions is he trying to answer as part of his job?
a. How can I communicate more effectively? b. What is the difference between artificial intelligence and emotional intelligence? c. How can government officials get themselves re-elected to office? d. What is the correlation between race and class? e. How do people use limited resources to try to satisfy unlimited wants?
As output increases, AVC approaches ATC because of
A) diseconomies of scale. B) diminishing marginal returns. C) decreasing average fixed cost. D) increasing marginal cost.
If we assume that velocity is constant, and if the money supply increases by 6 percent, we would expect, ceteris paribus, that the price level would
A) increase by 3 percent. B) increase by 6 percent. C) decrease by 3 percent. D) decrease by 6 percent.