Ethan washes and irons his own shirts. Sophia, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Ethan must enjoy ironing more than Sophia does.
b. Ethan must be better at ironing than Sophia is.
c. The opportunity cost of ironing is greater for Ethan.
d. Sophia has a higher opportunity cost of laundering her clothes than Ethan does.
D
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What caused the major economic conflict between the North and the South immediately before the outbreak of the Civil War?
A. Agricultural development. B. Industrialization in the North. C. Trade barriers with England. D. All of the choices are true.
The opportunity cost of good A in terms of good B is equal to the
A) money price of good A minus the money price of good B. B) money price of good B minus the money price of good A. C) ratio of the money price of good A to the money price of good B. D) ratio of the money price of good B to the money price of good A.
Explain the nature and consequences of asymmetric information for each of the following cases. What options are available in each instance to reduce the problem?
a. medical insurance b. issuance of credit cards c. professional athletes d. market for used appliances
In the above table, if the marginal factor cost is $48, how many workers would be hired?
A) 3 B) 4 C) 5 D) 6