Suppose that a professional photographer takes a prize-winning digital photo. She can sell a 5"x7" color print of the photo for $10 . She can also sell the digital file for $20 . There are 500 people willing to buy the color print and 2,000 people willing to buy the digital file. Assume the costs to the photographer are zero and that the people who purchase the digital file cannot resell the file
itself or any prints made from it. What should she do in order to maximize her profits?
a. earn $5,000 by selling only the color prints
b. earn $40,000 by selling only the digital files
c. earn $45,000 by selling both the color prints and the digital files at their respective prices
d. We do not have enough information with which to answer this question.
c
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Suppose a student is attending your college on an athletic scholarship, and doesn't pay a penny for tuition. According to the economic way of thinking, the student's cost of attending college is
A) zero. B) bore completely by the college's athletic fund. C) positive, because the student sacrificed some other opportunity to attend your college. D) positive, because the student still needs food and housing. E) negative, because nobody really gains by trying to combine athletics with higher education.
What is the Gini ratio?
What will be an ideal response?
Of the following high-income countries, which has the highest life expectancy at birth?
A) Canada B) Japan C) the United Kingdom D) the United States
If the Fed wishes to increase the money supply then it should:
a. increase the required reserve ratio. b. increase the discount rate. c. buy government securities on the open market. d. do any of these.