When your wages rise, the:
A. opportunity cost of an hour of work decreases.
B. opportunity cost of an hour of leisure increases.
C. opportunity cost of an hour of leisure stays the same.
D. cost of working increases.
Answer: B
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The capital and financial account records
A) the current value of the balance of payments in U.S. dollars. B) all the purchases and sales of capital goods in the United States. C) imports and exports of capital goods. D) transactions involving trade, interest payments, and net transfers. E) transactions involving foreign investment in the United States and U.S. investment abroad.
A firm's profit is
a. greater if it is a corporation rather than if it is a sole proprietorship b. higher if it raises its price than if it does not c. lower if it lowers its price than if it does not d. never taxed by the government e. its revenue minus its costs
Figure 10.2 A Macroeconomic Model with Government Spending and Taxes
What will be an ideal response?
Exhibit 13-4: Market for Healthy Hands Lotion
?
In Exhibit 13-4, the makers of Healthy Hands Lotion discovered that the lotion can cause skin reactions, but it doesn't inform the buyers. A news investigation reveals the reactions. When the market reacts to this new information, the price will
A. increase from $4.00 to $5.00 and the quantity will increase from 40 to 50 units. B. decrease from $5.00 to $4.00 and the quantity will decrease from 50 to 40 units. C. increase from $4.00 to $6.00 and the quantity will remain constant at 40 units. D. decrease from $6.00 to $5.00 and the quantity will increase from 40 to 50 units.