A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost
The wage (opportunity cost of leisure) is higher for the research scientist than for the common laborer, so the scientist takes less leisure than does the laborer.
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Describe the argument that education generates a positive externality. Why might this externality not be relevant in terms of economic efficiency?
What will be an ideal response?
If a firm increases output when MR < MC, then:
a. profit will equal zero. b. profit will increase. c. profit will decrease. d. profit will remain the same. e. the firm is minimizing losses.
We can represent the entry of new firms into a monopolistically competitive market by shifting the existing firms':
a. demand curves downward. b. demand curves upward. c. demand curves more inelastic. d. cost curves upward. e. cost curves downward.
Which of the following is the first step when economists analyze how individuals make choices?
a. Considering what choices are possible for individuals b. Thinking about which choices individuals actually make c. Considering what choices individuals might prefer d. Considering which choices might provide maximum utility