Marginal cost is the increase in total ________ that results from a one-unit increase in ________
A) fixed cost; the fixed input
B) cost; output
C) variable cost; the variable input
D) fixed cost; output
B
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If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be
A) an increase in the equilibrium price. B) a decrease in the equilibrium price. C) a decrease in the equilibrium quantity. D) an increase in the equilibrium quantity.
Stuck in Cleveland You purchased a roundtrip ticket to a friend's wedding in Cleveland on Saturday for $400, but on Sunday you discover your return flight is canceled due to weather. The airline will not be able to get you back home until late Monday but Greyhound has an overnight bus route that arrives at 6:00am Monday for $60 . What is the opportunity cost of missing work on Monday?
If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:
a. help the United States and hurt the other countries because the United States has a larger population. b. help all of the countries involved because every country would have a comparative advantage in the production of some goods. c. hurt all of the countries involved because all the countries are capable of producing anything that could be produced in one of the other countries. d. help the United States and hurt the other countries because the United States has more natural resources than the other countries.
Martha Stewart earns $4,000 and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option? NOTE: Martha has to pay tax on the $4,000, so she cannot put the full amount into either the taxable account or the Roth.
What will be an ideal response?