Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, it must be true that:
A. Moe gets less benefit from spending time with Curly than from studying.
B. Moe gets more benefit from spending time with Curly than from studying.
C. the opportunity cost of studying is greater than the value Moe gets from spending time with Curly.
D. the opportunity cost of studying is less than the value Moe gets from spending time with Curly.
Answer: B
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Ed thinks he looks good in tweed. Last week he saw a light-brown tweed sports coat at Dessen's Fine Clothing Store and thought that the $200 price tag was about as much as he was willing to pay. Lucky for him, he noticed an ad in the local paper that night that had attached a $20-off coupon for any purchase at Dessen's over $100 . Using the coupon, he bought the coat. He ended up with the coat
and a a. producer surplus of $80 b. producer surplus of $20 c. consumer surplus of $120 d. consumer surplus of $80 e. consumer surplus of $20
When does technology spillover occur?
a) when a firm passes the high costs of technical research on to society through higher prices b) when copyright laws prohibit firms from profiting from the research of others c) when a firm's research yields technical knowledge that is used by society as a whole d) when the government subsidizes firms engaged in high-tech research
Which of the following is a linear demand function?
A. Qxd = ?0 + ?XPX2 + ?YPY2 + ?MM2 + ?MH2. B. Qxd = ?PX?X PY?Y M?M H?H. C. Qxd = ? + ?X log PX + ?Y log PY + ?M log M + ?M log H. D. Qxd = ?0 + ?XPX + ?YPY + ?MM + ?HH.
The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:
A. securely defined property rights. B. adopting modern technology. C. significant capital formation. D. abundant domestic natural resources.