Suppose that the opportunity cost of a student's time is greater when he studies than when he works. What mistake is he making and why?
What will be an ideal response?
By arguing that his opportunity cost is higher for studying than when he works the student is saying that work has a more highly valued use for his time than studying. Working has a lower opportunity cost because the value of studying is less than the value or working. He should be working, not studying.
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If the wage rate is fixed at a certain level, the:
a. total wage cost curve is horizontal. b. total wage cost curve is a straight upward sloping line. c. MP must be constant. d. total wage cost curve will increase at an increasing rate. e. total wage cost curve will increase at a decreasing rate.
According to the graph shown, if the economy is operating under free trade, who would be opposed to a tariff?
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. Foreign producers
B. Domestic consumers
C. Domestic producers
D. Both A and B would be opposed to a tariff.