Recall the Application about Rory McIlroy and weed-whacking to answer the following question(s). The Application assumes that Rory McIlroy could whack down all the weeds on his estate in one hour at an opportunity cost of $1,000, but it would take 20 hours for a gardener to do it at a price of $10 per hour.Based on the assumptions in the Application, should Rory hire a gardener or cut the weeds himself?
A. He should hire the gardener because he would save $1,000.
B. He should hire the gardener because he would save $800.
C. He should cut the weeds himself because he would save $200.
D. He should cut the weeds himself because he would save $1,000.
Answer: B
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Using consumption theories based upon forward looking hypothesis, a temporary increase in government expenditures will have ________ impact on induced consumption
A) a large multiple B) a small multiple C) a variable D) no
Which of the following factors is associated with products with a highly price elastic demand?
a. Few close substitutes. b. A very short time period for consumers to respond to price changes. c. Many very close substitutes. d. A per unit price that is only a very small portion of most peoples' budgets.
Open-market operations refer to the purchase and sales of stocks listed on the New York Stock Exchange.
Answer the following statement true (T) or false (F)
Per capita GDP is
A. A dollar measure of the economic growth rate of a country. B. The value of the factors of production used to produce output in a country. C. The dollar value of GDP divided by total population. D. The sum of consumer goods, investment goods, government services, and net exports.