Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000
Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's total opportunity cost? A) $15,000
B) $100,000
C) $135,000
D) $115,000
D
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Why doesn't a firm price discriminate based on income levels?
A) It would be nearly impossible to conveniently confirm any individual's income level. B) It is illegal to ask someone their income levels. C) It is immoral to price discriminate based on income levels. D) They do: It is common practice for firms to price discriminate based on income.
The concept of utility maximization:
A. is solely used to measure an individual's satisfaction with his consumption choices. B. can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness. C. assumes each individual seeks to increase his own personal satisfaction regardless of others. D. None of these is true.
The value of a nation's currency is a good reflection of:
a. The nation's wealth. b. The nation's international competitiveness. c. The nation's income. d. None of the above.
Which of the following is most characteristic of developing nations?
A. A small percentage of the labor force in agriculture B. A relatively equitable distribution of income C. Low levels of labor productivity D. Low rates of population growth