Supposing a college education is choosing between a modestly expensive school ($100,000 over 4 years) and a less expensive school ($40,000 over 4 years), the student should
A. choose the more expensive school only if the present value of the difference in salary is $60,000 or less.
B. choose the more expensive school only if the present value of the difference in salary is $60,000 or more.
C. choose the more expensive school only if the difference in salary will total $60,000 or more.
D. choose the more expensive school only if the difference in salary will total $60,000 or less.
Answer: B
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Which of the following is included in a nation's current account?
a. Purchases of foreign assets b. Borrowings from abroad c. Foreign purchases of U.S. financial assets d. Investment income receipts e. Purchases of foreign real property
If MV rises from 250 to 375,
A. PQ will fall by 50%. B. PQ will remain the same. C. PQ will rise by 50%. D. PQ will rise by 100%.
Answer the following questions true (T) or false (F)
1. If the market for a product begins as perfectly competitive and then becomes a monopoly, there will be a reduction in economic efficiency and a deadweight loss. 2. Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output. As a result the monopolist will increase the price of its product to cover its higher cost. 3. Producers in perfect competition receive a smaller producer surplus than a producer in a monopoly.
In Figure 11.1, a decrease in consumer wealth is represented by a change in the consumption function from
A) to . B) C3 to C1. C) C2 to C1. D) C1 to C2.