The basic premise behind worker trade-offs in a market economy is that:
A. workers decide how to allocate their time between work and leisure.
B. workers don't decide how much leisure to have. The amount of leisure depends on the number of hours they must work, which is determined by the firm.
C. the trade-off between work and leisure is determined by factors other than what workers or firms would determine to be optimal.
D. firms decide how much workers must work and workers decide how much leisure to have.
A. workers decide how to allocate their time between work and leisure.
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As an economy increasingly specializes in producing one good, the opportunity cost of that good increases. The opportunity cost increases because
A) not all goods are equally valuable. B) as more of a good is produced, the profit from its production must rise. C) resources are not equally productive in all activities. D) what must be paid to resources increases. E) human wants are virtually unlimited.
An increase in subway fares in New York City will boost your expenditures on subway rides if
A) the supply of subway rides is elastic. B) the supply of subway rides is inelastic. C) your demand for subway rides is elastic. D) your demand for subway rides is inelastic.
Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. Bank reserves are equal to
A) $2 million. B) $3 million. C) $5 million. D) $10 million.
What is the value of $E in Stage 4?
A) $1,000 B) $1,800 C) $2,440 D) $2,952