Eli can decide between two jobs. One job is harvesting grapes at a local vineyard. He would earn $8 every hour he works there. He could also earn $7 an hour working as a bagger at the local grocery. Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same. If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:
A. less than $8.
B. exactly $7.
C. exactly $8.
D. more than $8.
Answer: C
You might also like to view...
Which of the following would lead to an increase in bond supply?
A. An increase in corporate taxes. B. A decrease in expected inflation. C. An improvement in general business conditions. D. A decrease in government spending relative to revenue.
Which of the following statements about economic scarcity is FALSE?
A. Scarcity only occurs if there are shortages and people wait in line to buy things. B. Scarcity results in the necessity to make choices. C. Scarcity results from not having enough resources to produce all the things we want. D. Scarcity occurs among the poor and the rich.
Suppose the economy is experiencing a recession and high unemployment. What would be the interpretation of how an expansionary monetary policy would address this problem?
What will be an ideal response?
Some hotels in Myrtle Beach, South Carolina charge over $200 a night in the summer but sometimes as little as $99 a night in the winter. Use supply and demand analysis, including graphical and verbal explanation, for these winter “sales.”
What will be an ideal response?