While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
A) 75 cents.
B) zero.
C) 80 cents.
D) 20 cents.
D) 20 cents.
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Which of the following could be the price elasticity of demand for a good for which an increase in price would increase revenue?
a. 0.3 b. 1 c. 1.8 d. None of the above could be correct.
A factory worker earned $10 an hour in 1980. The CPI was 0.82 in 1980. The same factory worker was earning $15 an hour in 1990 when the CPI was 1.31. From 1980 to 1990, the factory worker's hourly real wage:
A. increased from $10 to $15. B. remained constant. C. decreased from $12.20 to $11.45. D. increased from $7.63 to $18.29.
If Kobe, an NBA star athlete, earns $10 million per year but has no money in the bank, he has a
A. high income and high wealth. B. low income and high wealth. C. high income and low wealth. D. low income and low wealth.
Suppose there are two types of jobs-safe and risky. Safe jobs currently pay $10 per hour. Risky jobs currently pay $20 per hour. The government intervenes in the market, mandating that all firms offer safe jobs and pay a wage of $10 per hour. Which of the following is true?
A. Workers who originally worked risky jobs are helped by the policy. B. Workers who originally worked safe jobs are helped by the policy. C. Firms that originally offered risky jobs are hurt by the policy. D. Firms that originally offered safe jobs are hurt by the policy. E. No one is hurt by the new policy.