The marginal benefit Kyra gets from eating a second sandwich is
a. the total benefit Kyra gets from eating two sandwiches minus the total benefit she gets from eating one sandwich.
b. the same as the total benefit she gets from eating two sandwiches.
c. less than the marginal cost of eating the second sandwich since she chose to eat the second sandwich.
d. the total benefit Kyra gets from eating three sandwiches minus the total benefit she gets from eating two sandwiches.
a
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If there is no Ricardo-Barro effect, a government budget surplus ________ the total supply of loanable funds and ________ the real interest rate
A) does not change; does not change B) increases; raises C) increases; lowers D) decreases; lowers E) decreases; raises
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What costs would be considered when calculating accounting profit?
A. The opportunity cost of his job and interest forgone of $64,000, and the explicit cost of $8,000 B. The implicit cost of the interest forgone of $4,000 and the explicit cost of $8,000 C. The explicit cost of $8,000 D. The implicit cost of his job of $60,000 and the opportunity cost of forgone interest of $4,000
Suppose that a hog-producing firm has been dumping its wastes into the local river. The government taxes the sale of hogs to pay for the cost of the river cleanup. As a result
a. more hogs are produced and the price falls b. more hogs are produced and the price increases c. fewer hogs are produced and the price falls d. fewer hogs are produced and the price increases e. quantity produced doesn't change but the price increases
Real income in Year X is equal to:
a. Year X nominal income x CPI. b. (Year X nominal income/Year X real output)*100 c. (Year X nominal income/Year X real GDP)*100 d. none of the above.