Gregory is considering attending a concert with a ticket price of $40. He estimates that the cost of driving to the concert and parking there will add an additional $20
In order to attend the concert, Gregory will have to take time off from his part-time job. He estimates that he will lose 5 hours at work, at a wage of $8 per hour. In terms of dollars, Gregory's opportunity cost of attending the concert equals
A) $80. B) $100. C) $20. D) $60. E) $40.
B
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If there is unemployment and all businesses are operating at less than full capacity, then
A) society is at the wrong point on the production possibilities curve. B) there are too many workers, and some people ought to leave the labor force. C) we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories. D) society is producing inside its production possibilities curve.
Keeping in mind the Coase theorem, in the figure above, if the pesticide factories own the lake, the market does what?
A) overproduces 120 tons of pesticide B) underproduces 120 tons of pesticide C) overproduces 60 tons of pesticide D) produces the efficient quantity of pesticide
Define the following terms and explain their importance to the study of economics
a. principle of marginal productivity b. marginal physical product c. marginal revenue product d. derived demand e. economic rent
If the Federal Reserve uses open-market operations to lower the interest rates on short-term U.S. government bonds, then as a consequence asset prices:
A. Increase, and the average expected rate of return on assets decreases B. Decrease, and the average expected rate of return on assets increases C. Increase, and the average expected rate of return on assets increases D. Decrease, and the average expected rate of return on assets decreases