Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is:
A. the value she places on seeing the movie plus the $12 she spent on the umbrella, food and drinks.
B. the $12 she spent on the umbrella, food and drinks.
C. the value she places on seeing the movie.
D. only $0 because she would have spent $12 to go to the movie.
Answer: C
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Which of the following is likely to lead to a right shift in the demand curve for labor in the coffee producing industry?
A) A decrease in the price of tea B) An increase in the demand for tea C) A decrease in the demand for coffee D) An increase in the demand for coffee
Why do economists test their hypotheses?
A) to see whether people are motivated by self-interest B) to see whether their models predict the choices people will make C) to determine whether government policies have effectively achieved their goals D) to learn what people are thinking when they make the choices they do
Price elasticity of demand refers to the:
a. percentage increase in price in response to a percentage increase in quantity demanded. b. percentage decrease in price in response to a percentage increase in income. c. minimum amount that consumers will pay for a percentage change in quantity demanded or supplied. d. responsiveness of quantity demanded to a change in the price of a good.
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs.. Given this, we know that
a. Ken has an absolute advantage in chairs. b. Ken has a comparative advantage in tables. c. Traci has an absolute advantage in chairs. d. Traci has a comparative advantage in chairs.