In economics, we assume a rational person will choose to do an activity:
A. if the opportunity costs outweigh the benefits of doing so.
B. if the sunk costs outweigh the benefits of doing so.
C. if the sunk and opportunity costs combined outweigh the benefits of doing so.
D. if the opportunity costs do not outweigh the benefits of doing so.
D. if the opportunity costs do not outweigh the benefits of doing so.
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The Federal Reserve can directly affect its monetary policy ________, which then affect its monetary policy ________
A) goals; targets B) targets; tools C) targets; goals D) goals; tools
Paul has the utility function U(q1,q2 ) = q1q2. If Paul consumes q1 = 4 and q2 = 2 his Marginal Rate of Substitution is
A) -2. B) 1. C) -1. D) -1/2.
Arlo is offered a job in Des Moines, where the CPI is 60, and a job in New York, where the CPI is 125 . Arlo's job offer in Des Moines is for $48,000 . How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?
a. $23,040 b. $52,000 c. $79,200 d. $100,000
A monopoly produces widgets at a marginal cost of $20 per unit and zero fixed costs. It faces an inverse demand function given by P = 100 ? 4Q. What are the profits of the monopoly in equilibrium?
A. $800 B. $600 C. $200 D. $400