Cameron can spend the afternoon playing golf, driving his boat, or cleaning his house. Although he enjoys golf, he sometimes becomes frustrated when playing. He decides to enjoy a more relaxing afternoon on his boat. Cameron never thought about cleaning the house but did give golf some serious consideration. Cameron's opportunity cost of taking his boat out was:
A. a dirty house from deciding not to clean it.
B. the enjoyment he would have gotten from playing golf.
C. a dirty house and not playing golf.
D. enjoying a relaxing day on the lake.
B. the enjoyment he would have gotten from playing golf.
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Which of the following statements is false?
A. A call option will sell for a fraction of the cost of the stock. B. A futures contract can be written for a commodity (such as wheat), or for a currency. C. A futures contract gives the owner the right, but not the obligation, to buy or sell a commodity at a specified price on a given future date. D. The specified price at which an option gives the owner the right to buy a stock at is called the stick price.
The above figure shows supply and demand curves for milk. In an effort to help farmers, the government passes a law that establishes a $3 per gallon price support. The loss in social welfare resulting from this price support equals
A) k + i. B) j. C) [$3 ? (Q2 - Q1)] - h. D) $3 ? k.
When marginal product is rising, marginal costs will: a. rising
b. remaining unchanged. c. falling. d. rising by an equal amount.
What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?
A. Isoquants will become much flatter. B. Isoquants will become much steeper. C. Isoquants will not change but movement will occur upward on the curve. D. Isoquants will become a negatively sloped straight line.