On Naomi's pig farm, Naomi hires all the labor used, grows all the grain fed to the pigs, and owns the barn. The costs used to calculate the total cost curve include
a. only the cost of labor.
b. only the cost of labor and the cost of grain, which is completely consumed in the period in which it is grown.
c. only the variable cost of growing grain.
d. the cost of labor, the cost of growing grain, and the opportunity cost of the barn.
d
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Which of the following scenarios is an example of an investment in human capital?
A. A firm replaces manually controlled production with a computer-controlled procedure. B. A chemical firm supports research to develop new chemicals. C. A firm purchases new equipment for a manufacturing process. D. A firm pays for workers to take college classes.
Marginal revenue measures the change in
a. output generated by a change in price b. price generated by a change in output c. output generated by hiring one more factor of production d. total revenue generated by a change in price e. total revenue generated by a change in output
Lines of credit provided by financial intermediaries:
A. are pre-approved loans that can increase liquidity and lowering transaction costs. B. decrease liquidity for customers but increase income for the intermediary. C. are costly for intermediaries to provide so are only available to large commercial customers. D. require deposits in the intermediary that equal or exceed the amount of the line of credit.
Tim decides to spend four hours playing video games rather than attending his classes. His opportunity cost of playing games is
a. the value of the knowledge he would have received had he attended his classes. b. the $50 he could have earned if he had worked at his job for those four hours. c. the value of his time playing video games minus the value of attending classes. d. nothing, since he valued playing video games more than attending classes.