Just like other scientific models, economic models simplify reality using
assumptions.
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The opportunity cost of attending college includes the cost of
A) the tuition but not the job at which you would otherwise have worked. B) the highest valued alternative to attending college. C) the highest valued alternative to attending college plus the cost of tuition. D) tuition, books, and the lost wages for the hours spent studying.
Refer to Figure 19-6. Which of the following would cause the change depicted in the figure above?
A) Dumping accusations result in the United States placing tariffs on produce imported from Mexico. B) An increase in investment in infrastructure causes U.S. productivity to rise relative to Mexican productivity. C) A declining preference for Kentucky bourbon causes Mexican consumers to decrease their preferences for U.S.-produced alcohol relative to Mexican-produced alcohol. D) A contractionary monetary policy causes a decrease in the price level of U.S. goods relative to Mexican goods.
The price elastic portion of the linear demand curve lies:
a. b and c. b. above the point of unit elasticity. c. anywhere to the left of current market prices. d. below the point where total revenue is maximized. e. at the intersection with the supply curve.
Which of the following is not a means-tested program?
a. Social Security b. Temporary Assistance for Needy Families c. Earned Income Tax Credit d. Supplemental Security program