Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished
After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is her marginal benefit if she sells the quilt "as is" now?
A) $100
B) $900
C) She makes a marginal loss of $600, not a marginal benefit.
D) The marginal benefit cannot be determined.
B
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A) General Motors B) Lehman Brothers C) Bear Stearns D) American International Group (AIG)
Why does the Fed rarely increase reserve requirements?
(A) It is not an effective way to manipulate the money supply. (B) It is too complicated as a way to make minor adjustments. (C) It can be disruptive to the whole banking system. (D) It might not have a significant effect on the money available.
Referring to Figure 18.2, the peso is likely to depreciate if the exchange rate is either ________ or ________ pesos to the dollar.
A. 10; 11 B. 11; 12 C. 12; 13 D. 13; 14
Both Amy and Tom are trained as nurses. Amy makes $35,000 a year working as a nurse in an emergency room in a New York City hospital. Tom makes $20,000 working as a community health nurse in New York City. Which of the following is true?
A. From this information it cannot be determined who is better off because income is an imperfect measure of well-being. B. Tom is clearly worse off than Amy, because he earns $15,000 a year less. C. Even though income is an imperfect measure of well-being, Amy and Tom must be equally well off because either is free to switch jobs. D. Tom must be better off than Amy if he is willing to take a job at $15,000 a year less than Amy.