Related to the Economics in Practice on page 3: According to the Economics in Practice, when rains in rural India are plentiful, the opportunity cost of having children attending school instead of working on harvesting the larger agricultural output
A. remains unchanged.
B. decreases.
C. increases.
D. is zero, because the children are obtaining an education.
Answer: C
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Refer to Figure 7-5. The efficient price of medical services is
A) $40. B) $55. C) $65. D) > $65.
Which of the following conclusions about supply-side tax initiatives is accepted by most economists?
a. Supply-side tax cuts are likely to benefit the poor as much as the rich. b. Supply-side tax cuts will almost certainly lead to smaller budget deficits. c. Such tax cuts probably will increase aggregate supply quickly, but an increase in aggregate demand will come later. d. Tax reductions aimed at stimulating business investment are likely to have a greater impact than tax reductions aimed at getting people to work longer hours or save more.
The price a borrower must pay for the use of other people's money is called
A) a dividend. B) financial capital. C) liquidity. D) interest.
Which of the following results in a movement upward along the supply curve for movies in theaters?
A) an increase in the price of movie tickets B) a decrease in the price of movie tickets C) a decrease in the price of downloaded movies D) a decrease in movie star salaries E) an increase in the number of theaters