Jorge is debating whether to concentrate on playing professional football or professional baseball. He is offered $6 million a year to play baseball and $8 million a year to play football. If he chooses to play football
A) the economic rent in his salary is $8 million.
B) the economic rent in his salary is $6 million.
C) the economic rent in his salary is $2 million.
D) the economic rent in his salary is $14 million.
Answer: C
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According to the efficient market hypothesis, rational people will not recognize that asset prices are rising too quickly.
Answer the following statement true (T) or false (F)
If wages are higher in the United States than in Brazil, then:
A) trade is still beneficial to the United States and Brazil. B) Brazil will not have a comparative advantage in the production of any good. C) the United States cannot have a comparative advantage in the production of any good. D) trade with Brazil will clearly lower wages in the United States.
As long as the aggregate supply curve is upward sloping, an increase in aggregate demand will increase
A. real wealth. B. price levels. C. unemployment. D. net exports.
As job opportunities for women and the wages those jobs pay have increased, the opportunity cost of doing housework has ________, so many families have chosen to hire specialists in households chores, such as cleaning services and lawn care services,
because the cost of these specialists is ________ than the cost of the wife (or husband) performing those chores. A) increased; higher B) increased; lower C) decreased; higher D) decreased; lower