Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State College is:
A. $20,000
B. $35,000
C. $15,000
D. $30,000
Answer: B
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The NYSE is also called
A) the over-the-counter market. B) the Big Board. C) the Central Market. D) the Exchange.
Andi uses all of her income to purchase books and games. At any two points A and B on Andi's budget constraint,
a. Andi is spending all of her income on books and games. b. Andi is spending one half of her income on books and the other half of her income on games. c. the price of books relative to the price of games is different. d. All of the above are correct.
Which of the following is an imperfection of market economies?
A. They produce inexpensive services but expensive manufactured goods. B. They place undue importance on the needs of future generations. C. They cannot provide certain goods such as national defense. D. They distribute income too unequally.
A law that requires the money supply to grow by a fixed percentage each year would eliminate
a. the time inconsistency problem, but not political business cycles.
b. the political business cycle, but not the time inconsistency problem.
c. both the time inconsistency problem and political business cycles.
d. neither the time inconsistency problem nor political business cycles.