Consider the following information regarding a person's decision to go to college: college tuition is $20,000 per year, room and board is $10,000 per year, and books and materials are $2,000 per year. Suppose that instead of going to college this person could have earned $18,000 working in a store. An economist would calculate the cost of going to college as
a. $20,000.
b. $30,000.
c. $32,000.
d. $50,000.
e. $18,000.
d
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A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level B) real GDP; investment C) real GDP; the price level D) the price level; investment E) investment; the price level
If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) 40
B) 80
C) 55
D) 60
If reserves pay interest below the market federal funds rate, why would a bank hold any excess reserves?
What will be an ideal response?
Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see
A. An increase in the demand for pens. B. A decrease in the demand for pens. C. A decrease in the supply of pens. D. An increase in the supply of pens.