Some college students have claimed that because their incomes will be higher as a result of attending college, there is no opportunity cost of attending college. Do you agree? Explain
No. Although the rate of return on college education seems to be fairly high, there is still an opportunity cost of attending. Besides the explicit (out-of-pocket) costs of tuition, books, etc., there is the implicit cost of forgone income during college years. It should be noted, however, that if students have very low value in the labor marketplace, then the implicit cost is low-but not zero.
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Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
One argument for cyclical unemployment is
a. high labor force participation. b. a downturn in the economy. c. sticky downward wages. d. an upturn in the economy.
The leader of a federal political party made the following campaign promise: "My administration will improve welfare by increasing national defense without requiring sacrifices elsewhere in the economy." This is an example of a positive statement
a. True b. False Indicate whether the statement is true or false
Refer to the above diagram. At output level Q total variable cost is:
A. 0BEQ. B. BCDE. C. 0AFQ. D. 0CDQ.