Angie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $25,000 a year as a florist. If she chooses to be a therapist, the economic rent is
A) $40,000.
B) $25,000.
C) $15,000.
D) unable to determine.
Answer: C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The fraction of each added dollar of income that is used for consumption is called the:
a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).
The following table shows Jay's estimated annual benefits of holding different amounts of money.Average money holdingsTotal benefit$100$20$200$29$300$36$400$41$500$44 How much money will Jay hold if the nominal interest rate is 4 percent? (Assume he wants his money holdings to be in multiples of $100.)
A. $300 B. $100 C. $400 D. $200
A reduction in the minimum wage will tend to cause which of the following?
A) an upward shift in the WS curve B) a downward shift in the WS curve C) an upward shift in the PS curve D) a downward shift in the PS curve E) none of the above