In general, it can be said that leisure is a "free good."
Answer the following statement true (T) or false (F)
False
The value of any activity will be at least the value of the opportunity cost. Therefore, the best estimate of the value of an hour of leisure is the hourly wage that could have been earned.
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If the Fed sells U.S. government securities,
A) the U.S. Treasury loses some revenue. B) the U.S. Treasury gains some revenue. C) banks' reserves increase. D) the federal funds rate rises. E) None of the above answers is correct.
Which of the following is NOT a reason why a monopoly might be regulated?
A. To reduce the inefficiency associated with profits B. To limit prices in important markets with economic or political consequences C. To deal with the negative consequences of government-created monopolies D. To ensure that a good is produced at least cost
To maximize profit, a monopolistically competitive firm will produce where
A. marginal revenue equals price. B. marginal revenue equals marginal cost. C. price equals average total cost. D. price equals marginal cost.
If opportunity costs are constant, the production possibilities frontier would be graphed as
A) a negatively sloped straight line. B) a ray from the origin. C) a positively sloped straight line. D) a negatively sloped curve bowed in toward the origin.