Suppose that Oprah Winfrey was not a superstar, then she would have been a judge making $100,000 per year. If she makes $65 million dollars this year, her economic rent is
A) $65.0 million.
B) $65.1 million.
C) $100,000.
D) $64.9 million.
Answer: D
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According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this week-end if:
A. the benefits of seeing the movie are greater than the costs of seeing the movie. B. you have a free ticket. C. you can afford to go to the movies. D. you really like Star Wars.
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
Why was running a budget deficit to build the U.S. highway system in the 1950s a benefit to the country?
a. The costs of building the highway system were so small that they were considered irrelevant. b. There were benefits of increasing potential GDP, so the increased costs were not considered. c. The benefits of it increasing potential GDP were greater than the increased costs of borrowing for the deficit. d. The costs of building the highways system were greater than the benefits of building the highway system.
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. The real interest rate in the United States rises relative to the real interest rate in Mexico. It follows that
A) the dollar will depreciate and the peso will appreciate. B) the peso will depreciate and the dollar will appreciate. C) both the peso and the dollar are likely to appreciate. D) both the peso and the dollar are likely to depreciate.