A bank has $6 million in assets and $4 million in liabilities. The remaining $2 million is the bank’s ______.

After reading an economics textbook about labor supply and utility maximization, Amelia Ruiz said, "I don't allocate my time like that.". Her professor replied,

a. "You caught us. Economists do not know what they are talking about.". b. "This proves that you will always choose to spend your time in nonmarket work.". c. "You act as if you allocated your time to derive the same expected net marginal utility from the last unit of time spent in each alternative use.". d. "Don't you want to use your unlimited resources to satisfy your finite wants?" e. "It is obvious that labor supply is a derived demand based on marginal revenue product.".

Physical and human capital investments are

a. different in that the opportunity for economic profit is present for physical capital but not human capital decisions. b. different in that human capital decisions do not involve future income considerations while physical capital investments do. c. similar in that non-pecuniary considerations do not influence the choices of utility-maximizing decision makers in either case. d. similar in that both involve forgoing current income (and consumption) with the objective of increasing one's future income (and consumption).