Generally, the opportunity cost and the money cost of a good
a. are identical only if the good sells in a free market.
b. are different.
c. matter only to the purchaser of the good.
d. are not reflected in its price.
b
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The "rational expectations" school of economists, including Robert Lucas and Thomas Sargent, argue that changes in monetary policy cannot affect unemployment rates in the short run or long run
Indicate whether the statement is true or false
If Pat's income increased from $250,000 to $500,000 and his consumption increased from $200,000 to $300,000, what was his marginal propensity to consume?
a. 0.4
b. 0.6
c. 0.8
d. 0.9
A package delivery service currently has 12 vans and 16 employees. Vans cost $400 per week and employees earn $300 per week. The last van added 480 packages delivered to total output, while the last employee added 450 packages. The firm
A. should use more vans and fewer employees because the last van added 480 packages while the last employee only added 450 packages. B. is making the correct decision because the dollar expenditure ($4800) is equal for vans and employees. C. should use fewer vans and more employees because the last dollar spent on vans yielded 1.2 additional packages delivered, while the last dollar spent on employees yielded 1.5 packages delivered. D. could deliver more packages for the same budget by using fewer vans and more employees. E. both c and d
GNP is the:
A. aggregate final output of the citizens and businesses of an economy in a one-year period. B. total market value of all final goods and services produced in an economy in a one-year period. C. aggregate output of the citizens and businesses of an economy in a one-year period. D. total market value of all goods and services produced in an economy in a one-year period.