If Johnny weren't in economics class this morning, he'd be sleeping. The value Johnny places on sleeping represents his:
A. marginal benefit.
B. incentives.
C. sunk cost.
D. opportunity cost.
D. opportunity cost.
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If the real exchange rate rises 4%, domestic inflation is 2%, and foreign inflation is 0%, what is the percent change in the nominal exchange rate?
A) 6% B) 4% C) 2% D) 0%
The top quintile's share of all income exceeds 50% in 2005
Indicate whether the statement is true or false
Assume Congress enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
a. $500 billion decrease in aggregate demand. b. $500 billion increase in aggregate demand. c. $1,000 billion increase in aggregate demand. d. $1,000 billion decrease in aggregate demand.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206Suppose Smith and Jones begin by producing 0 computers and 220 calculators per hour. If they wish to produce 2 computers and 200 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 12 minutes making computers and 48 minutes making calculators; 1 hour making calculators B. 48 minutes making computers and 12 minutes making calculators; 1 hour making calculators C. 1 hour making calculators; 10 minutes making computers and 50 minutes making calculators D. 30 minutes making each; 30 minutes making each