Here are the costs of going to college: tuition $5,000; books $200; housing $1,000; food $1,000; lost income from work $10,000. Studying and work are equally desirable in your mind. Suppose that you could live at home at no cost to you if you worked, but must live on campus if you go to school. What is the total opportunity cost to you of going to school rather than working? (Food costs the same at school or home.)
A. $15,200
B. $7,200
C. $5,200
D. $16,200
Answer: D
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An increase in the productivity of labor induces
A) an increase in the demand for labor. B) an increase in the cost of labor. C) a firm to hire fewer workers since fewer workers are needed with the increase in productivity. D) a firm to offer a higher wage for workers since the workers are now more productive.
As income increases, consumption increases too, but not as rapidly. This is a statement of the:
A. Production function. B. Consumption function. C. Substitution effect. D. Income effect. E. Wealth effect.
A demand schedule is a:
A. graph which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. B. table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. C. line which shows the quantities of a particular good or service that consumers are willing to purchase at various prices. D. table which shows the quantities of a particular good or service that consumers are willing to purchase at various income levels.
A benefit to consumers of monopolistically competitive markets is that:
A. consumers only have to choose from one product. B. consumers have a variety of products from which to choose. C. goods are sold at the lowest possible average cost of production. D. price is equal to marginal cost in equilibrium.