Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department
pays Kachina $20 per hour. Which of the following statements is correct?
a. Kachina should increase the number of hours she works for the Economics Department to make her income comparable to her consulting business income.
b. Kachina cannot be maximizing her well-being if she continues to work for the Economics Department.
c. If Kachina chooses one hour at the beach with her friends rather than spend one more hour with a consulting client, the forgone income of $25 is considered a cost of the choice to go to the beach.
d. Both b) and c) are correct
c
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What can the Federal Reserve do to reduce the natural rate of unemployment?
A) nothing B) follow expansionary monetary policy that will reduce inflation C) follow expansionary monetary policy that will increase inflation D) follow contractionary monetary policy that will increase inflation
To have significant foreign direct investment, a developing country ought to have a stable system of property rights
a. True b. False Indicate whether the statement is true or false
If the price elasticity of supply is 0.8, and price increased by 5%, quantity supplied would
a. increase by 4%. b. increase by 6.25%. c. decrease by 4%. d. decrease by 6.25%.