You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $10
B. $2
C. $8
D. $12
Answer: B
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Along the long-run Phillips curve, the unemployment rate ________, and the inflation rate ________
A) can be any value; is equal to the natural inflation rate B) is equal to the natural unemployment rate; is equal to the natural inflation rate C) is equal to the natural unemployment rate; can be any value D) can be any value; can be any value E) None of the above answers is correct.
The law which prohibits embezzlement of funds by employees or income tax evasion acts as a(n):
a. psychological constraint b. ethical constraint. c. organizational constraint. d. contractual constraint.
Voluntary programs for reducing pollution
a. have been more successful in the United States in encouraging recycling than any other type of program. b. are most appropriate when surveillance and enforcement are impractical. c. work most reliably when voluntary reduction of pollution over a long period is encouraged. d. are enforced by legal authority.
Expansionary monetary policy during periods of underutilized resources can cause
A) real Gross Domestic Product (GDP) to increase without an increase in the price level. B) real Gross Domestic Product (GDP) to increase with a decrease in the price level. C) real Gross Domestic Product (GDP) to increase with an increase in the price level. D) nominal Gross Domestic Product (GDP) to increase but cannot affect real Gross Domestic Product (GDP).