Your neighbors have offered to pay you to look after their dog while they are on vacation. It will take you one hour per day to feed, walk, and care for the dog, which you can do either before or after you go to work. Your regular job pays $10 per hour, and you can work up to eight hours per day. The smallest amount of money you would accept to look after your neighbor's dog each day is equal to:
A. $15, because overtime wages are generally 1.5 times your regular wage when you work more than eight hours a day.
B. zero, because your regular job is not available for more than eight hours per day.
C. $10, because that is your opportunity cost of one hour of work.
D. the value you place on one hour of leisure.
Answer: D
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Central banks can increase the money supply by:
a. Selling foreign exchange. b. Raising margin requirements. c. Making discount loans. d. All of the above. e. None of the above.
Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?
A. subtracting total variable costs from total revenue B. calculating the product of average total cost and quantity C. subtracting the average variable cost from the total cost D. subtracting the total variable cost from the total cost
The opportunity cost of something is the gain you receive as a result of your sacrifice.
Answer the following statement true (T) or false (F)
Which group in the United States tends to spend the largest amount of money per person on health care?
A. Young and middle-aged people from 19 to 64 B. Elderly people from 65 and up C. Children and teens from infancy to 18 D. All groups spend about the same amount of money per person.