Related to the Economics in Practice on page 26: Which one of the following occurs when an individual enters the paid work force?
A. The opportunity cost of time for housework increases, because money earned at a job can allow individuals to pay someone to do household chores that the individuals used to do themselves.
B. The opportunity cost of time for housework decreases, because increased earning power makes individuals less likely to do their own housework.
C. The opportunity cost of time for housework increases, because time spent on housework could be spent on money-earning activities.
D. The opportunity cost of time for housework decreases, because as more people enter the work force, businesses have greater incentives to develop innovations that make housework more efficient.
Answer: C
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When there is a surplus of snowboards, the
A) demand for snowboards is greater than the supply of snowboards. B) supply of snowboards is greater than the demand for snowboards. C) quantity of snowboards demanded is greater than the quantity of snowboards supplied. D) quantity of snowboards supplied is greater than the quantity of snowboards demanded. E) price rises to restore the equilibrium.
An efficient allocation of resources is demonstrated by a point
a. above the production possibilities frontier. b. below the production possibilities frontier. c. on the production possibilities frontier. d. near the middle of the production possibilities frontier.
Which of the following is a listing of the types or categories of resources?
a. land, labor, and capital b. land, labor, and education c. land, labor, and efficiency d. land, labor, and markets e. land, labor, and inputs
What important lesson did American economists learn in the 1980s and again in 2001-2003?
a. Large tax cuts can lead to a balance of trade surplus. b. Large government budget deficits can crowd out consumption. c. Large government budget deficits can bankrupt the nation. d. Large government budget deficits can crowd out net exports.