The opportunity cost of going to college consists of more than just the tuition that will be paid
a. True
b. False
A
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All else equal, if oil prices decrease, annual oil consumption will ________ and the years it will take to deplete the stock of oil will most likely ________
A) decrease; increase. B) decrease; decrease C) increase; increase D) increase; decrease
On account of a massive construction boom in a country, the demand for iron ore increases substantially. This causes iron ore prices to escalate. Producers increase iron ore mining considerably in the short run, in spite of knowing that this will adversely affect future availability of ore. Which of the following is most similar to the scenario described above?
a. Corn producers hoard their supplies in order to induce a price hike. b. Petroleum manufacturers increase extraction in response to sky-rocketing fuel prices. c. The government of a country makes aforestation mandatory for lumber firms. d. Impressive revenue generation induces the government of a country to impose additional fuel surcharge. e. To discourage smoking, the government of a country increases sales tax on cigarettes.
Which of the following formulas would correctly calculate a monopolist's profit?
a. profit = price – marginal cost b. profit = price – average total cost c. profit = (price – marginal cost) × quantity d. profit = (price – average total cost) × quantity
In a two time-period example, economic efficiency is maximized when
a. The marginal net benefits are maximized in both time periods b. The discount rate is set equal to the marginal benefits c. The marginal net benefit in the first time period is set equal to the present value of marginal net benefits in the second time period d. The marginal net benefits in the first period are set equal to the discount rate in the second time period e. The marginal net benefits in the first period are set equal to the user costs in the second time period