Jennifer has just finished high school and is deciding whether to start working or go to college. She has already been offered a job that pays $35,000 a year. Four years of college will cost $12,000 each year. She would earn an extra $20,000 each year after she graduates for the 45 years she plans on working until she retires. Assume that the interest rate is 8.5%. What is Jennifer's opportunity cost of one year of college?
A. $12,000
B. $17,000
C. $35,000
D. $47,000
D. $47,000
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What are sticky prices, and how can contracts make them "sticky"?
What will be an ideal response?
Refer to the figure above. In free trade A will import
A) 700 units from country C. B) 700 units from C and 600 units from B. C) 600 units from C. D) 600 units from C and 400 units from B.
If the exchange rate is equal to the ratio of the domestic and foreign price indexes,
A) absolute PPP holds. B) relative PPP holds. C) one currency is said to be overvalued. D) one currency is said to be undervalued.
If real interest rates in the United States fell and real interest rates in England rose, we would expect people to: a. increase their demand for British pounds. b. borrow more from U.S. sources
c. buy relatively more British assets. d. all of the above