A dedicated professor loves being in the classroom and would teach for $50,000 per year, but she is actually paid $80,000 per year. This individual

A. receives economic rent of $30,000.
B. has an opportunity cost of $30,000.
C. receives economic rent of $130,000.
D. has an opportunity cost of $130,000.


Answer: A

Economics

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Consider a small open economy with desired national saving of Sd = 20 + 200rw and desired investment of Id = 30 - 200rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is

(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0. (d) Now suppose something causes desired national saving to increase by 10, so that it is now Sd = 30 + 200rw. Repeat parts (a), (b), and (c). (e) Suppose, with desired national saving at its original level of Sd = 20 + 200rw, something causes desired investment to rise by 10, to Id = 40 - 200rw. Repeat parts (a), (b), and (c).

Economics

Different people may have different tastes, but their tastes do not change over time

a. True b. False

Economics

Experts in? hand-drawn animation who remain unemployed due to the film? industry's switch to? computer-generated animation are considered to be

What will be an ideal response?

Economics

Are Social Security payments included in GDP? Explain why or why not

What will be an ideal response?

Economics