Consider Frank's decision to go to college. If he goes to college, he will spend $21,000 on tuition, $11,000 on room and board, and $1,800 on books. If he does not go to college, he will earn $16,000 working in a store and spend $7,200 on room and board. Frank's cost of going to college is
a. $33,800.
b. $42,600.
c. $49,800.
d. $57,000.
b
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The efficiency loss that occurs when a market is monopolized is known as:
a. a deadweight loss. b. an inventory loss. c. an economic loss. d. a non-economic loss. e. a capital loss.
The old saying, “There are no free lunches,” can best be used to explain that ______.
a. free-riders will use goods without paying for them b. there are trade-offs for every government program c. transaction costs prevent the completion of most deals d. private firms are more efficient than the government
A country that fixes a price for its currency that is below the market price will:
A. decrease its money supply. B. eventually increase the value of its currency. C. lose official reserves. D. accumulate official reserves.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.