Sophia is an architect and she is trying to decide whether to hire Jacob, a draftsman, to assist with her work. Sophia could hire Jacob at $20 per hour but it would take him three times as long to complete a task as it takes Sophia. Sophia is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?
a. Sophia should not hire Jacob because it would be faster for her to do the work herself.
b. Sophia should do the drafting work herself because she has the lower opportunity cost.
c. Jacob should be hired at the $20 per hour wage rate.
d. Jacob should be hired, but only if he is paid more than $30 per hour.
C
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The change in price that results from a rightward shift in demand will be greater if
A) the supply curve is horizontal than if the supply curve is upward sloping. B) the supply curve is relatively steep than if the supply curve is relatively flat. C) the supply curve is upward sloping than if the supply curve is vertical. D) the supply curve is horizontal than if the supply curve is vertical.
Market prices
What will be an ideal response?
The interest rate is the price paid for the use of a:
A. financial liability. B. real asset. C. real liability. D. financial asset.
A change in consumer taste will prompt a change in _____________.
Fill in the blank(s) with the appropriate word(s).