Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on the TV. As a rational person you should decide to go to the movie
A. only if it brings you more pleasure than the cost of the tickets.
B. always, since the tickets were free.
C. only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game.
D. only if you would gain some pleasure from it.
Answer: C
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Which of the following is considered to be a cost of information?
a. The price of the commodity for which information is collected. b. The time spent to collect the information. c. The difference in price charged by different sellers for the same commodity. d. The difference in price paid by different buyers for the same commodity.
The Great Depression of the 1930s led to a revolution in macroeconomic thinking, following the work of
a. Arthur Laffer. b. Milton Friedman. c. Adam Smith. d. John Maynard Keynes. e. David Ricardo.
A depreciation of the U.S. dollar relative to the euro would tend to
A) increase U.S. imports from Germany. B) increase U.S. exports to Germany. C) decrease U.S. exports to Germany. D) increase both U.S. imports from Germany and U.S. exports to Germany.
Which of the following would help reduce the future burden of the U.S. Public Debt?
A) worldwide demand for buying and holding U.S. debt decreases B) the Fed creates enough new currency to buy all of it back C) the eligibility for and size of Social Security benefits is reduced D) the working age population decreases