You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. What is the opportunity cost of going to the concert?
A. $1
B. $9
C. $36
D. $35
Answer: C
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Let C represent consumption expenditure, S saving, I gross private domestic investment, G government expenditure on goods and services, and X - M net exports of goods and services. Then GDP equals
A) C + S + G + X - M. B) C + S + G - X - M. C) C + I + G + X - M. D) C + I + G - X - M.
One of the social benefits of frictional unemployment is that
a. workers get time off from work. b. economic growth is limited. c. workers move from less to more valuable firms. d. wage rates decrease.
Marginal social cost is defined as marginal private cost
A. plus opportunity cost. B. plus marginal opportunity cost. C. minus incidental cost. D. plus incidental cost.
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
If the park is currently 2 acres, and land costs $20 per acre, the town should:
A. purchase two additional acres. B. purchase 4 additional acres. C. reduce the size of the park. D. not change the size of the park.