Brooke and Sandy both attend the same college and have the same expenses for tuition, books, and supplies. However, Brooke is a famous actress who could earn $2 million per year if she were not attending college whereas Sandy could earn $10,000 a year serving hamburgers if he were not attending college. It follows that the opportunity cost of attending college:
A. is greater for Brooke than for Sandy.
B. for Brooke and Sandy cannot be compared.
C. is greater for Sandy than for Brooke.
D. is the same for both Brooke and Sandy.
Answer: A
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An important lesson of the Chilean crisis was that
a. inflows of foreign capital should be strictly regulated b. governments should ensure that the current account balance is kept close to 0 c. governments need to maintain regulation and oversight of the banking sector d. government intervention in financial matters leads to capital flight e. none of the above
The facts show that the political business cycle theory
A) does a good job of explaining monetary policy during presidential election years. B) is unable to explain monetary policy during presidential election years. C) doesn't generally support the political business cycle theory. D) explains monetary policy best during years in which the President is running for reelection.
The amount of deadweight loss from a tax depends upon the
a. price elasticity of demand. b. price elasticity of supply. c. amount of the tax per unit. d. All of the above are correct.
What is the value marginal product of labor if: P = $10, MPL = $25, and APL = 40?
A. $10,000 B. $250 C. $400 D. $1,000