Carl is considering attending a concert with a ticket price of $35 . He estimates that the cost of driving to the concert and parking there will total an additional $20 . In order to attend the concert, Carl will have to take time off from his part-time job or forgo studying for an exam scheduled for the next morning. He estimates that he will lose 5 hours at work, at a wage of $6 per hour, or 5
hours of study time. If Carl considers studying the best alternative use of his time, his opportunity cost of attending the concert equals
a. $55
b. $55 plus the value of the higher exam grade he could earn by studying for 5 hours
c. $85 plus the value of the higher exam grade he could earn by studying for 5 hours
d. $85 minus the value of the higher exam grade he could earn by studying for 5 hours
e. $55 minus the value of the higher exam grade he could earn by studying for 5 hours
B
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The marginal rate of substitution measures the slope of the:
a. total utility curve. b. demand curve. c. budget line. d. indifference curve.
The present membership in the Federal Reserve System includes
a. all the commercial banks in the nation. b. less than half of the commercial banks in the nation. c. only the Federal Reserve Banks and their branches. d. commercial banks, savings & loans, and credit unions.