Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $30,000 a year as a florist. If she chooses to be a therapist, the opportunity cost is
A) $40,000.
B) $30,000.
C) $10,000.
D) unable to determine.
Answer: B
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In many countries, education is either wholly provided by the government or is heavily subsidized. How would an economist explain this?
A. Since education has a spillover? benefit, private markets will under provide for it. B. Education is a pure public good and those who do not pay cannot be excluded from it. C. Individuals will not purchase education because they do not benefit from it. D. Since education has a spillover? cost, private markets will over provide for it. E. The only way to provide education is through a? government-sponsored system.
If the budget deficit was eliminated, the federal government would have more money than it could spend
a. True b. False Indicate whether the statement is true or false
Higher energy prices can be used to adequately explain the productivity slowdown in
a. the United States and the rest of the world. b. the United States but not the rest of the world. c. the rest of the world but not the United States. d. neither the United States nor the rest of the world.
Jayden can produce 10 pens or 20 pencils in one hour while Alexander can produce 15 pens or 5 pencils in one hour. Which of the following statements is correct?
a. Alexander has a comparative advantage over Jayden in the production of pencils b. Alexander has a comparative advantage over Jayden in the production of pens c. Jayden has a comparative advantage over Alexander in the production of pens d. Alexander and Jayden cannot gain from specialization and exchange.