Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie
Therefore, the opportunity cost of attending class is the tennis and the movie she had to give u
Your friend's analysis is incorrect. The opportunity cost of an action is the (single) best thing she had to give up, not all the things she had to give u
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There are circumstances under which the corporation tax is equivalent to an economic profits tax.
A. True B. False C. Uncertain
A 95% confidence interval
A) indicates that there is 95% confidence that the value of the estimated coefficient is correct. B) indicates that there is 95% confidence that the degrees of freedom explain the data correctly. C) is a range of of values that gives a 95% probability that the true value of the coefficient is within the specified interval. D) is the probability that we have obtained the true value of the coefficient with 95% accuracy.
Given the information in Figure 14.4, the monopsony wage rate is:
A) W1. B) W2. C) W3. D) W4. E) none of the above
If there is currently a recessionary gap: a. The price level will tend to rise. b. Real output will tend to fall
c. Both a. and b. will occur. d. None of the above will occur.