You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon?
A. $57
B. $8
C. $12
D. $22
Answer: D
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A) increases; increases; increases B) increases; increases; does not change C) increases; does not change; increases D) does not change; increases; increases
If the costs of coordination and enforcement are _______________ the surplus lost to the externality, then ________________.
A. higher than; a private solution will not work B. lower than; a private solution will not work C. higher than; a private solution will work D. None of these statements is true.
In Country X, the government requires employers to collect 9 percent of every employee's compensation as payroll tax. This is an example of
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?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Nigel's opportunity cost of producing one hair pin is:
A. 1/3 of a bandana. B. 2.5 bandanas. C. 3 bandanas. D. 10 bandanas.