In determining whether a further investment in education for an individual is worth the costs, an economist would look at whether the sum of the
A. annual education costs is exceeded by the sum of the increases in income that are attributable to the increased education.
B. present value of the annual education costs is exceeded by the sum of the present value of the annual income to the person.
C. annual education costs is exceeded by the sum of annual income to the person.
D. present value of the annual education costs is exceeded by the sum of the present value of the increases in income that are attributable to the increased education.
Answer: D
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The slope of a production possibilities frontier that displays increasing opportunity cost is
A) positive and constant. B) negative and constant. C) steeper near the horizontal intercept than near the vertical intercept. D) steeper near the vertical intercept than near the horizontal intercept.
Which of the following statements regarding U.S. economic growth is NOT correct?
A) Over the past 100 years, on the average real GDP per person grew 2 percent a year. B) The average annual growth rate of real GDP per person in the United States was rapid during World War II. C) In the 1930s, real GDP fell well below its trend. D) The growth rate of real GDP per person accelerated between 1973 to 1984.
Refer to Figure 13-4. What is the area that represents the total fixed cost of production?
A) P1bdP3 B) 0P1aQa C) P0adP3 D) That information cannot be determined from the graph.
Suppose external costs are present in a market which results in the actual market price of $24 and market output of 325 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient outcome would be greater than 325 units. b. The efficient outcome would be less than 325 units. c. The efficient outcome would also be 325 units. d. The efficient price would be less than $24.