Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An economist would calculate the total cost for one photo frame to be
a. $5.
b. $10.
c. $15.
d. $25.
c
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Which of the following is not an example of inequality of opportunity?
a. The Indian caste system. b. The Japanese public education system. c. Jim Crow laws in the United States. d. South African apartheid.
The Fed is often considered the bankers' bank because it:
a. demands much more currency than it has available. b. no longer has a monopoly on printing paper currency. c. lowers the discount rate in order to restrict the money supply. d. holds bankers reserves, provides banks with currency and loans, and clears their checks. e. refuses to uses its power of open market operations when a quorum of state-chartered bankers petitions it.
The equation of exchange specifies that
A. velocity and money supply are directly related. B. MsP = VY. C. Ms = PVY. D. MsV = PY.
Profits can be maximized by equating MR = MC = Price
A. only in discriminating monopoly markets. B. only with government price controls. C. only in monopoly markets. D. only in perfectly competitive markets.