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Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College cost $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. LArry's opportunity cost of attending State College is:
a) $35,000
b) $30,000
c) $20,000
d) $15,000 Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College cost $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry maximizes his economic surplus by attending:
a) Elite U
b) State College
c) NoName U because he has a full scholarship there
d) NoName U because the annual cost is only $20,000 Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school -aged children. Childcare for their children costs $12,000 per year. Given that Chris doesn't want to stay home with the kids, regardless of what Pat does, Pat should stay home with the kids if, and only if, the value of Pat spending more time with the kids is greater than:
a) $37,000
b) $25,000
c) $13,000
d) $12,000 LAst year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.
Last year, Christine's explicit costs were _____, and her implicit costs were _______.
a) $15,000; $43,000
b) $18,000; $40,000
c) $36,000; $140,000
d) $51,000; $40,000 Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.
Last year, Christine's accounting profit was ______ and her economic profit was _____
a) $100,000; $64,000
b) $64,000; $49,000
c) $49,000; $9,000
d) $9,000; 0 