If Jennifer didn't have class in the evening, she would save the $4 campus parking fee and spend four hours at work where she earns $10 per hour. The opportunity cost of attending class is:
a. $0
b. $4.
c. $40.
d. $44.
d
You might also like to view...
Refer to Negative Externality. Suppose there are no transactions costs. Also suppose the externality is internalized when the damaged parties offer producers a bribe of $5 per unit to reduce their production. Coase's analysis indicates that social gain in this situation will equal
The following questions refer to the accompanying diagram, which shows the effects of a negative externality created by an industry's production. The equilibrium quantity in the absence of any attempt to internalize the externality is QE, and the optimal quantity according to a Pigovian analysis is QO.
a. area A + B + F.
b. area A + B + F - E.
c. area A + B + C + D + F + G + H.
d. area A + B + C + F + G.
Automatic stabilizers are provisions in the law which create automatic ________ in government spending or ________ in taxes when real output declines.
A. decreases; decreases B. increases; increases C. increases; decreases D. no change; no change
A decrease in the capital gains tax on income made from new capital investment will:
A. shift the supply of saving curve to the right. B. shift the demand for investment curve to the left. C. shift the supply of saving curve to the left. D. shift the demand for investment curve to the right.
The precautionary demand for holding money arises because
A) people want be able to make unexpected purchases or to meet emergencies. B) credit cards charge low interest rates, which makes money more attractive than credit. C) expected transactions are completed more easily with debit cards than with credit cards. D) people would rather hold money in the form of time deposits than in the form of hard currency.