Carl is considering attending a concert with a ticket price of $35 . He estimates that the cost of driving to the concert and parking there will total an additional $20 . In order to attend the concert, Carl will have to take time off from his part-time job and forgo studying for an exam scheduled for the next morning. He estimates that he will lose 3 hours at work, at a wage of $6 per hour, plus
2 hours of study time. Carl's opportunity cost of attending the concert equals
a. $73 plus the value of the higher exam grade he could earn by studying longer
b. $73
c. $35 plus the value of the higher exam grade he could earn by studying longer
d. $35
e. $55 plus the value of the higher exam grade he could earn by studying longer
A
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A) stays the same; increases B) increases; increases C) increases; decreases D) decreases; stays the same
The real return on bonds is
A) 0. B) r. C) R. D) i.
In the real business cycle model, the short-run aggregate supply curve is always the same as ________
A) long-run aggregate supply B) the long-run aggregate demand schedule C) the velocity of money D) the real rate of interest
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A. decrease, which is a shift to the left of the demand curve. B. decrease, which is a shift to the right of the demand curve. C. increase, which is a shift to the left of the demand curve. D. increase, which is a shift to the right of the demand curve.