Trinh quits his $80,000-a-year job to become a full-time volunteer at a museum. What is the opportunity cost of his decision?

A) the value he attributes to the joy of working at a museum
B) depends on the "going rate" of museum employees
C) at least $80,000
D) 0 since he will no longer be earning a salary


C

Economics

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A) unemployed. B) employed. C) not in the labor force. D) frictionally unemployed. E) a discouraged worker.

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When there is excess demand for a product in a market,

a. price will tend to fall. b. price must be below the equilibrium price. c. price must be above the equilibrium price. d. producers will reduce output and sales will fall.

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Suppose the MPC is .6 and consumption increases by $8 billion. Consequently, total income through the multiplier effect will:

a. $20 billion b. $8 billion c. $15 billion d. $13.3 billion

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If a firm shuts down in the short run, it will:

A. incur losses equal to its fixed costs. B. have total revenue greater than total fixed costs. C. reduce its losses to zero. D. do this because P > AVC.

Economics