Inga and Ron both work for the same firm on the same career ladder. Each has the same stock of human capital except for one difference: Inga has worked at the firm for 10 continuous years but Ron has had two leaves of absence mixed in with his 10 years of experience with the firm. One should expect:
A. Inga and Ron to earn the same income.
B. Inga to earn twice as much as Ron.
C. Ron to earn more than Inga.
D. Inga to earn more than Ron.
Answer: D
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Which of the following is often referred to as the basic postulate of economics?
a. Individuals act only out of selfish motives. b. Incentives matter--individuals respond in predictable ways to changes in personal costs and benefits. c. The accuracy of the assumptions is the best test of an economic theory. d. The value of a good is objective; it is equal to the cost of producing the good.
A black market is a market in which
A. goods are sold at outlet prices. B. sales take place exclusively at outlet prices. C. sales taxes are effectively doubled. D. goods are traded at prices above their legal maximum prices.
Refer to the information provided in Figure 6.11 below to answer the question that follows.
Figure 6.11Refer to Figure 6.11. The opportunity cost for a day's worth of income is ________ of leisure.
A. 1 hour B. 10 hours C. 24 hours D. indeterminate from this information.
Using the information in the table above, depreciation equals
A) -$90 billion. B) $90 billion. C) -$70 billion. D) some amount that cannot be determined.