Ben quit his job as an economics professor to become a golf professional. He gave up his salary ($40,000 . and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings (profit) were $45,000 . Ben's economic profits were
a. $45,000.
b. $5,000.
c. $2,000.
d. zero.
d
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Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by worker in a job employing low-skilled labor b. the purchase of company stock by a worker c. a summer internship at a law firm filled by someone attending law school d. payments into a retirement pension plan by a skilled laborer
If aggregate demand grows faster than aggregate supply, the equilibrium price level will rise.
Answer the following statement true (T) or false (F)
If resources are combined efficiently in production, then the society
A. is producing at a point on the production possibility frontier but not necessarily at the most-desirable point. B. is experiencing economic growth. C. is producing at a point outside the production possibility frontier. D. is producing at the most-desirable point on the production possibility frontier.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.