On a TE-TP diagram consider a level of Real GDP at which the vertical distance to the TE line is less than the vertical distance to the 45-degree line. This level of Real GDP is __________ its equilibrium level, with __________
A) above; TE > TP
B) above; TE < TP
C) below; TE > TP
D) below; TE < TP
B
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The opportunity cost of owning a car is
A. the price of the car. B. filling the tank twice a week. C. the cost of getting your car inspected once a year. D. the vacation to Hawaii you had to give up in order to make your car payments.
Jayanthi moves her yoga studio from her home to a space she rents in Oakland, California. Holding everything else constant, as a result of this move
A) her implicit cost falls and her explicit cost rises. B) her opportunity cost rises. C) her economic cost rises. D) her explicit cost falls and her implicit cost rises.
Older, more experienced workers tend to make more than younger workers, but as a worker nears retirement, pay increases level off, and may even fall a little.
Answer the following statement true (T) or false (F)
The Clear Plastic Company's plant discharges large quantities of toxic chemicals into some groundwater sources. Residents in the surrounding area have higher medical bills because of Clear Plastic's pollution. If the firm is forced to pay the social costs of its production
A. the amount of plastic it produces will increase in order to pay the additional costs. B. its supply curve will shift to the right. C. the price it charges for its plastic will decrease. D. it will produce less and charge more for its plastic.