Suppose that Rosa is considering migration to another country. To move, she will have to spend $5000 on transportation and $4000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's implicit cost of migrating is:
A. $9,000
B. $500,000
C. $509,000
D. $5,000
B. $500,000
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The economic theory that emphasizes the role of difficulties in coordinating economic affairs as a cause of economic fluctuations is known as
A) investment cycle theory. B) real business cycle theory. C) technology shock theory. D) Keynesian economics.
Most economists believe that the CPI overstates the actual changes in prices while the chain index for GDP understates them
Indicate whether the statement is true or false
The growth records of Japan and Hong Kong during the last fifty years indicate that an economy can grow rapidly without
a. securely defined property rights. b. abundant domestic natural resources. c. significant capital formation. d. adopting modern technology.
One In the News article in the text titled "The Real March Madness: Ticket Prices " described how professional scalpers use the Internet to sell hard-to-get tickets to concerts and sporting events. Apparently the initial price of the tickets being scalped was too
A. High for equilibrium, resulting in a surplus of tickets. B. Low for equilibrium, resulting in a shortage of tickets. C. Low for equilibrium, resulting in a surplus of tickets. D. High for equilibrium, resulting in a shortage of tickets.