Chapter 8in class Practice

Chapter 8in class Practice - 1.Suppose that you could...

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1.Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in 2 hours. You value your time at $11.00 an hour. The tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is: A) $40. B) $55. C) $110. D) $165. 2.Jon Brooks quit his job in a bicycle shop, where he earned $15,000 per year, to become a graduate student in economics. At the university he attended, he spent $2,000 on books, $1,000 on cough medicine, and earned $12,000 as an economics instructor per year. What were Jon's economic costs for a year while attending college? 3.Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were: 4.If a firm's revenues just cover all its opportunity costs, then: 1
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