Sue Ann Buchanan, can make $800,000 on the pro tennis tour, but would be willing to do it for $200,000. Her economic rent is
A. $200,000.
B. $600,000.
C. $800,000.
D. $1,000,000.
B. $600,000.
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High Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of WorkersChairs Produced Per Hour00110218324428530For simplicity, assume that labor is the only input. How many workers will be hired if the hourly wage for workers is $120?
A. 5 B. More than 5 C. 0 D. 3
Crowding out occurs when expansionary fiscal policy leads to
A) a higher money supply and a reduction in net exports. B) a higher money supply and a reduction in the interest rate. C) a higher interest rate and a reduction in private investment. D) a higher price level and a reduction in the money supply.
Marginal cost refers to the incremental cost arising from a decision.
Answer the following statement true (T) or false (F)
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. What is the peso value of Argentina's total external wealth?
A) -60 billion pesos B) -150 billion pesos C) -0 billion pesos D) -90 billion pesos