Sarah buys and sells real estate. Two weeks ago, she paid $140,000 for a house on Oak Street, intending to spend $20,000 on repairs sell the house for $175,000. Last week, the city government announced a plan to build a "halfway house" for convicted criminals on Oak Street. As a result of the city's announced plan, Sarah is weighing two alternatives: She can go ahead with the $20,000 in repairs and then sell the house for $135,000, or she can forgo the repairs and sell the house as it is for $120,000. Sarah should
a. keep the house and live in it.
b. go ahead with the $20,000 in repairs and sell the house for $135,000.
c. forgo the repairs and sell the house as it is for $120,000.
d. moving the house from Oak Street to a more desirable location, irrespective of the cost of doing so.
Answer: D
Macroeconomics
- Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good for which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year, then each country's maximum consumption of new radios and televisions per year will be
- Economists generally support
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- When a country has a comparative advantage in producing a certain good,
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- Economists regard events from the past as
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- When two variables have a negative correlation,
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- The slope of a straight line is calculated by
- You know an economist has crossed the line from scientist to policy adviser when he or she
- Which of the following is an example of a normative statement?
- Which of these statements is a normative statement (as opposed to a positive statement)?
- Which of the following is an example of a positive statement?
- Economists consider normative statements to be
- A normative statement describes how the world
- Which is the best statement about the roles of economists?