Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that she would not be willing to work for anything less than $50,000. Her decision is based on
A. the high cost of raising a child.
B. her desire to save for her child's college expenses.
C. her increased value to her employer.
D. the value she places on spending time with her child.
An economic naturalist is described as someone who
A. uses economic arguments to protect forests and wetlands from development.
B. has a natural talent for drawing graphs.
C. applies economic insights to everyday life.
D. studies the process of natural selection in a marginal cost and marginal benefit framework.
You own a pizza shop called "Pizza'R' Us". Currently you are paying your cooks an hourly wage of $20. You sell a medium pizza for $10 a pie. By hiring more cooks, you can increase your pizza production as shown in the following table.
What is the average benefit per pizza if you hire 2 cooks?
A. $4
B. $6
C. $8
D. $10
Which of the following questions would not be part of macroeconomics?
A. What caused the great depression?
B. At what rate does the US economy typically grow?
C. Did the sharp increase in gasoline prices alter SUV sales?
D. How does government spending affect the economy?
According to the cost-benefit principle, the level of activity that provides the largest net
benefit is
A. 1
B. 3
C. 4
D. 6