21. Bill and Sam both attend the same college and have the same expenses for tuition, books, and supplies. However, Bill is a famous athlete who could earn $1 million per year if he were not attending college while Sam could earn $15,000 a year serving hamburgers if he were not attending college. It follows that (Points : 1) the opportunity cost of attending college is the same for both Bill and Sam the opportunity cost of attending college is greater for Bill than for Sam the opportunity cost of attending college is greater for Sam than for Bill the opportunity costs of attending college for Bill and Sam cannot be compared22. The goods market is the market in which: (Points : 1) businesses buy factors of production from households. households buy factors of production from businesses. businesses produce goods and services and sell them to households. government produces goods and services and supplies them to households.23. An improvement in technology will: (Points : 1) imply that the law of increasing costs no longer applies. shift the production possibilities curve inward. shift the production possibilities curve outward. have no effect on the production possibilities curve.24. When price = $15, quantity demanded = 200. When price = $14, quantity demanded = 250. The price elasticity of demand is: (Points : 1) 0.31 3.2 12.2 22.2 6.225. When a country runs a trade deficit, it does so by: (Points : 1) borrowing from foreign countries or selling assets to them. borrowing from foreign countries or buying assets from them. lending to foreign countries or selling assets to them. lending to foreign countries or buying assets from them.26. If deposits in Bank A total $100 million and the required reserve ratio is 12 percent, then required reserves at Bank A equal: (Points : 1) $88.0 million. $12.0 million. $8.8 million. $1.2 million.27. A required reserve ratio of 15 percent gives rise to a simple money multiplier of: (Points : 1) 12.5 4 6.67 828. In 2004, the dollar depreciated sharply against the euro and the yen. The dollar’s depreciation should result in: (Points : 1) an increase in U.S. exports and an outward shift of the U.S. aggregate demand curve. an increase in U.S. exports and an inward shift of the U.S. aggregate demand curve. a decrease in U.S. exports and an outward shift of the U.S. aggregate demand curve. a decrease in U.S. exports and an inward shift of the U.S. aggregate demand curve. 30. If the wage rate is the MFC, a worker will be paid a wage (Points : 1) equal to his or her contribution to the productive process, or MRP less than his or her contribution to the productive process, or MRP greater than his or her contribution to the productive process, or MRP cannot be determined because many other factors besides productivity affect a firm’s decision regarding pay
