Homework SourseIf you make an interestfree loan of 10000 to a friend to hel
If you make an interest-free loan of $10,000 to a friend to help her get started in her new business and the interest rate charged by banks on similarly-risky loans is 15%, then the opportunity cost of the loan is equal to
Question 9 options:
$10,000.
$1,500.
$11,500.
$0.
$8,500.
If the production possibilities curve is smoothly bowed out (concave to the origin), the underlying economy is probably a
single-Person model
two person model
half person model
three person model
multi person model
You have just purchased a car for $20,000 and realized that you still have to pay for insurance, licence, monthly parking and gasoline. the $20,000 spent on the car represents?
Sunk cost
Marginal cost
Average cost
total
A movement along a demand curve from one price-quantity combination to another is called
Question 12 options:
a change in quantity demanded.
a shift in the demand curve.
a change in demand.
a change in quantity supplied.
Welfare economics reflects
Question 15 options:
society\'s ethical standards.
economic analysis based on facts.
society\'s ethical standards and economic analysis based on facts.
value-free observations on economic relationships.
subjective values.
Applying the cost-benefit principle to the issues of large class sizes and recent tuition hikes in Canadian universities and colleges will help to find
Question 14 options:
a fair solution to the problems of such increases.
the best solution to the problems of such increases.
a plausible explanation of the problems of such increases.
out who could best bear the full burden of such increases.
out whether the government is doing their best to avert the problems of such increases.
| $10,000. | |||||||||||||||||||||||||||||||
| $1,500. | |||||||||||||||||||||||||||||||
| $11,500. | |||||||||||||||||||||||||||||||
| $0. | |||||||||||||||||||||||||||||||
| $8,500. If the production possibilities curve is smoothly bowed out (concave to the origin), the underlying economy is probably a single-Person model two person model half person model three person model multi person model You have just purchased a car for $20,000 and realized that you still have to pay for insurance, licence, monthly parking and gasoline. the $20,000 spent on the car represents? Sunk cost Marginal cost Average cost total A movement along a demand curve from one price-quantity combination to another is called Question 12 options:
|
Solution
(1) Option (b).
Opportunity cost = Interest foregone = $10,000 x 15% = $1,500
(2) Option (b)
a 2-person (or 2-good) model.
(3) Option (a)
It is sunk cost because, this cost cannot be reversed.
(4) Option (a)
Movement along demand curve reflects a change in quantity demanded. A shift is a change in demand.
(5) option (c)
Welfare economic assesses the social impact of economic events.
(6) option (c)
A cost-benefit method will explain (or attempt to explain) why such increases were required and what are the benefits arising out of them.
