Related to the Economics in Practice on page 26: Which one of the following occurs when an individual enters the paid work force?
A. The opportunity cost of time for housework decreases, because as more people enter the work force, businesses have greater incentives to develop innovations that make housework more efficient.
B. The opportunity cost of time for housework increases, because time spent on housework could be spent on money-earning activities.
C. The opportunity cost of time for housework increases, because money earned at a job can allow individuals to pay someone to do household chores that the individuals used to do themselves.
D. The opportunity cost of time for housework decreases, because increased earning power makes individuals less likely to do their own housework.
Answer: B
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If the money multiplier is 3.0, a $1,000 increase in the monetary base
A) increases quantity of money by $3,000. B) decreases the quantity of money by 3 percent. C) increases the monetary base by $300. D) increases the money multiplier by 3 percent. E) decreases quantity of money by $3,000.
If the consumer price index in 2007 is 25 times that of 1860, and a slave cost $2,000 in 1860, how much is that in terms of 2007 dollars?
a. $12,500 b. $25,000 c. $50,000 d. $75,000 e. $750,000
A microeconomist would most likely study the effect of a reduction in income tax rates on: a. total output in the economy
b. the output of the steel industry. c. inflation. d. unemployment.
Technological change in modern societies is most likely the result of increases in
a. machine building. b. more natural resource use. c. education. d. the labor force.