Using Scenario 1 what is the maximum grade you could earn in any one course? If you wanted to earn a grade of 90 in French but no better than a 70 in economics are you operating on your budget constraint? Why or why not?
What will be an ideal response?
The maximum grade you could earn in either course is a 100 . Fifteen hours times 2 points is 30 points plus the original 70 that you were going to get without studying. If you only care about making a 90 in French and no better than a 70 in economics then you are not operating on the budget constraint. Why? It would only require 10 hours of your time to earn the 90 . You would have 5 hours left over.
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The sum of the current account plus the capital and financial account plus the official settlements account equals
A) 100 percent. B) U.S. official reserves. C) U.S. exports. D) zero. E) government expenditures.
A movement along a demand curve is most likely to be caused by
A) a change in the population. B) a change in expectations. C) a change in income. D) a change in the price of a good.
If all the return to a resource is economic rent, we know that
A) the price of the resource is below its opportunity cost. B) the price of the resource equals its opportunity cost. C) the price of the resource is above its opportunity cost. D) the resource has no opportunity cost.
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.If the players in the figure shown act in their own self-interest, then we know that Dunkin Donuts will earn:
A. -$1 million. B. $0 million. C. -$2 million. D. $2 million.