An old friend takes you out to dinner and pays for your meal. Which of the following best represents your opportunity cost?
A) the amount of money you would have spent to pay for the dinner yourself
B) the money your friend could have made buying a winning lottery ticket
C) the money you could have made working overtime at your job
D) Both A and C
C
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If a firm produces where its MR equals its MC,
a. TR is at a maximum, and TC is at a minimum b. output is at a maximum c. losses are at a maximum d. profit is maximized or loss minimized e. both TR and TC are at a maximum
Economists favor a negative income tax because they believe
a. that it will create more jobs for economists to monitor the program. b. the current welfare programs have excessively high work incentives, which result in less total work. c. it is more efficient than the existing welfare system because NIT provides better work incentives. d. All of the above are true.
A higher price level would mean ____ for a person who has a bank deposit of $2 million
a. an increase in real income b. a decrease in real wealth c. a decrease in nominal income d. an increase in nominal income
Which of the following variables is capable of continually increasing aggregate demand with no offsetting influence on any of the components of total spending?
A) the inflation rate B) the interest rate C) government spending D) the money supply E) the wage rate