You won a free ticket to see the latest Star Wars movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Wars movie on Friday?
A. $35
B. $30
C. $50
D. $0
Answer: A
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The Big Mac index is a measure of how well the purchasing power parity theory works.
Answer the following statement true (T) or false (F)
Refer to the scenario above. What is the change in total revenue due to the price change?
A) The total revenue increases by $350. B) The total revenue increases by $3,400. C) The total revenue decreases by $1,650. D) The total revenue decreases by $2,275.
Left alone, with no government interference, a profit-maximizing firm will produce emissions
A) where the MSB curve crosses the MCA curve. B) at the vertical intercept of the MSB curve. C) at the horizontal intercept of the MSB curve. D) at the vertical intercept of the MCA curve. E) at the horizontal intercept of the MCA curve.
The backward bending supply curve for labor is
a. not valid for individuals b. valid only for aggregate labor markets c. the result of purchasing power effects that outweigh the relative price changes for leisure d. has to do with lack of firm interest in high-cost labor e. describes a relationship between population and labor quantities