Bob goes to his favorite hot dog stand, which is offering one hot dog for $2.50 or two for $4.00. Bob’s marginal cost of a second hot dog is
A. $1.00.
B. $2.00.
C. $1.50.
D. $2.50.
Answer: C
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How are money cost and opportunity cost related to each other?
A. If markets function well, they are closely related. B. They are always identical in any economic system. C. Opportunity cost must always exceed money cost. D. Money cost is greater than or equal to opportunity cost. E. In a market economy, they must be equal to each other.
Why is the Fed referred to as the "lender of last resort"?
What will be an ideal response?
In a country with a working-age population of 150 million, 120 million workers are employed and 10 million workers are unemployed. What is the size of the labor force?
A) 150 million B) 130 million C) 120 million D) 10 million
Consider the production of some industrial good that involves air pollution. The table below gives the marginal social cost (MSC), the marginal cost (MC), and the marginal social benefit (MSB) for each level of output (Q)
Q MSC MC MSB 1 3 2 11 2 6 4 10 3 9 6 9 4 12 8 8 5 15 10 7 6 18 12 6 To arrive at the efficient market equilibrium the government could impose a tax of A) $3. B) $4. C) $8. D) $9.