A college bookstore offers both new and used Physics 101 textbooks. Vicki pays $120 for a new copy, Darrel pays $85 for a used copy. Who made an economically efficient choice?
A) Vicki
B) Darrel
C) Both Vicki and Darrel
D) Neither one of them—they could have found a better deal on the Internet.
C
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Which of the following can lead to permanent differentials in resource prices?
a. an increase in demand for a product produced by the resource b. differences in the inherent quality of resources c. differences in the time and money involved in developing necessary skills d. differences in the nonmonetary rewards of a job e. a lack of resource mobility
Members of the Federal Reserve Board of Governors are appointed for one fourteen-year term:
A. In an effort to isolate the Fed from political pressures. B. So that Fed decisions will be based on political considerations. C. To give Congress better control over the money supply. D. In an effort to make the Fed responsive to voters.
Cost-push inflation might initially result from
A) the use of new technology.
B) a decrease in the quantity of money.
C) an increase in the cost of resources.
D) an increase in the quantity of money.
E) an increase in government expenditure.
With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output quantity must be:
A. 200 units B. 400 units C. 800 units D. 1,600 units