Unformatted text preview: I 13. In 1980, Fidel Castro, the leader of Cuba at that time, sent 120,000 people to exile. These exiled
people came to US. and settled in Miami. This was a in the labor market of Miami; and as a result, the equilibrium wage rate
a. negative supply shock; decreased. Negative supplyshocWreased _-i 3’- a. !- 3| 6’ a G >.- mfg ""-
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. crease in the equilibrium level of employment, decreased. (kw/L :/ S?\ $
14. Suppose Maria spends her afternoon at the beach, paying $2 to rent a beach umbrella and $10 for
food and drinks, rather than Spending an equal amount of money to go to a movie, her next-best option.
Mana' s opportunity cost of going to the beach 1S
. ' . A .. shearnnssedaseeangi
b.$2, because the money she spent on food and drinks would have been spent anyway. c. the $12 she spent on the umbrella, food, and drinks.
d. the pleasure of the movie she missed seeing plus the $12 she spent on the umbrella, food, and drinks. ‘ _,‘$0 because the money she spent on food, drinks, and an umbrella would have been spent at the
II OVie. 15. Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is
allowed 600 minutes of free calls and then pays 25 cents per minutes for any calls above 600 minutes. Mary has used 300 minutes this month so far. What is her marginal cost per minute of making '2 more
.. ls lasting 10 minutes each? . I. .
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I6".l . 25 cents c. $2.50
(1. 4 cents 16. Suppose you paid $150 to take this economics course, which meets 30 times, for one hour a class, during the course of the semester. Instead of attending class you could have either ﬂipped hamburgers
for $8 an hour or waited tables for $5 aghour. Given this information, the Opportunity cost of attergi‘mg (3%]; class session is: 30A \§Z©@< W; (73%\(;(% f‘QWb @(‘S I: \Cg/O
b. Between $5 and $8. 09 386M(
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_ x $6 , \rVO d. More than $8. 17. Catherine and Nancy both own homes with similar size lawns. Catherine mows her own lawn while
Nancy hires someone to mow hers. Assume both women are rational decision makers. Which is the best b. Nancy can get her lawn mowed for less than Catherine M f > i
c. Nancy doesn‘t own a lawnmower. d. Nancy earns more than Catherine does.
e. Catherine's overall level of economic beneﬁt must be lower. ...
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- Spring '07