Claire is on her way to her job at a call center where she was planning on spending three hours. She can drop in and work any hour she wants to and earn $12 per hour. Her friend calls and invites her to spend the next three hours bungee jumping. Claire decides to go with her friend, which tells us Claire's opportunity cost of working for three hours is:
A. greater than $36.
B. greater than $12.
C. less than $36.
D. less than $12.
A. greater than $36.
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The ratio of bank's equity to its total assets is called
A) capital requirements. B) leverage. C) assets requirement. D) risk.
An owner of local salon realized that by decreasing the prices for haircuts, his revenue increased. This implies that
a. The demand for haircuts is elastic b. The demand for haircuts is inelastic c. The demand for haircuts is unitary elastic d. The demand for haircuts is perfectly elastic
If people like their goods in fixed proportions, the two goods are
a. perfect substitutes b. perfect complements c. complements (but not perfect) d. substitutes (but not perfect)
Assume that an inflationary gap must be closed by reducing aggregate expenditures. If consumers refuse to cut spending on consumption and producers won't cut demand for investment goods, the President:
a. can do nothing. b. must build more roads. c. must borrow from Wall Street. d. must increase Social Security expenditures. e. must cut government spending.