A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?
a. It would not affect the opportunity cost of playing basketball or of broadcasting.
b. It would increase the opportunity cost of continuing to play professional basketball.
c. It would cause the production possibilities frontier to become convex.
d. It would increase the opportunity cost of becoming a broadcaster.
e. It should have no bearing on the player's decision from an economic standpoint.
D
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Refer to Figure 15-11. Following the entry of Verizon, the subscription price falls from PM to PC. What is the increase in consumer surplus as a result of this change?
A) the area D + F B) the area B + C C) the area A + B + C D) the area B + C + D
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
With the opportunity to trade, Silvia can trade all the computers she can produce per year if she specializes in producing computers, for ________ pounds of beef.
A. 3,000 B. 2,000 C. 6,000 D. 4,000
The money demand curve will shift to the right when which of the following occurs?
A) an increase in income B) a reduction in the interest rate C) an increase in the money supply D) all of the above E) none of the above
Sara left her last job, in which she was earning $60,000, in order to form her own consulting business. Her revenues for the first year of consulting were $210,000. During that year, she hired two assistants for $25,000 each and spent $25,000 on office equipment. In addition, she incurred $75,000 in miscellaneous expenses. Sara's accounting profit that first year was
A. $60,000. B. $50,000. C. $210,000. D. $0.