Suppose Trevor Noah of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Trevor Noah's opportunity cost as a producer is
A. $400,000.
B. $600,000.
C. $1,400,000.
D. $1,000,000.
Answer: D
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A) more elastic is the demand for the good. B) less elastic is the demand for the good. C) smaller the degree of substitutability between the goods. D) larger the proportion of income that is spent on the good.
Which of the following is evidence of a shortage of walnuts?
A) The equilibrium price of walnuts falls due to a decrease in demand. B) The quantity of walnuts demanded is greater than the quantity supplied. C) Firms lower the price of walnuts. D) The price of cashews is lowered in order to make up for the walnut shortage.
Assuming no bequests, with a real rate of interest of 10 percent, wealth of $60,000, current income of $70,000, future income of $180,000 and future consumption of $158,000, current consumption must equal ________
A) $158,000 B) $150,000 C) $152,000 D) $130,000
In order to sell more of its product, a monopolist must
a. sell to the government. b. sell in international markets. c. lower its price. d. use its market power to force up the price of complementary products.