Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's explicit costs are ________, and Pat's implicit costs are ________.
A. $16,000; $51,000
B. $15,000; $36,000
C. $35,000; $16,000
D. $16,000; $35,000
Answer: D
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A change in the price level does not shift the aggregate demand curve
Indicate whether the statement is true or false
The country of Zincosa is in an economic slump with a very high unemployment rate. The stock market has crashed, and business confidence is at a low. Interest rates have fallen to 0.05, and the economy is in a liquidity trap. Facing such a crisis, the central bank of the country decides to purchase billions of dollars in bank debt and securities. Which of the following factors would most likely
have influenced the central bank to take such a step? a. The crash of the stock market b. A high rate of inflation c. A low rate of inflation d. The low interest rates
Suppose a tax is imposed on baseball bats. In which of the following cases will the tax cause the equilibrium quantity of baseball bats to shrink by the smallest amount?
a. The response of buyers to a change in the price of baseball bats is strong, and the response of sellers to a change in the price of baseball bats is weak. b. The response of sellers to a change in the price of baseball bats is strong, and the response of buyers to a change in the price of baseball bats is weak. c. The response of buyers and sellers to a change in the price of baseball bats is strong. d. The response of buyers and sellers to a change in the price of baseball bats is weak.
________ legislation generates concentrated benefits but imposes widespread costs, while ________ legislation generates concentrated benefits for one group, and imposes concentrated costs upon another group
a. Public interest; special interest b. Special interest; median voter c. Rationally ignorant; public interest d. Special interest; competing-interest