Question

Which of the following statements is (are) correct?
(x) College students often choose to attend college even though it reduces the present level of income because they believe that future income and job satisfaction will be greater if they successfully earn a higher degree of education.
(y) For many community college students, the largest single cost of a college education is the wages
given up to attend school.
(z) If wages for high school graduates rise, but college tuition does not change, then the opportunity cost of attending college decreases.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

According to the textbook, equality means that
A. all members of society have the same income.
B. society is getting the most it can from its scarce resources.
C. society's goods and services are distributed according to need.
D. the benefits of society's resources are distributed uniformly among society's members.
E. A and B, only

If Japan is better than the United States at producing cars, but the United States is better than Japan at producing airplanes, the United States should
A. impose a tariff (tax) on Japanese cars in order to protect jobs in the United States auto industry.

B. help United States consumers of cars by restricting the amount of Japanese cars that are imported in order to elevate the price of cars produced in the United States.
C. should buy Japanese cars and sell airplanes to Japan.
D. All of the above
E. A and B, only

Answer 1

1.) the correct answer is b.x is right as higher degree can lead to higher income as well as higher satisfaction. z is not right because as the wages for high school rises the opportunity cost will increase for college  

2.) equality means that the members of the society have the same income. hence option a is correct. also equality has nothing to do with scarcity of resources, hence e is not correct

3.) according to the concept of comparative advantage, each country should specialise in the production of goods in which they have a comparative advantage. here us is better at producing planes, whereas japan is better at producing cars. hence us should sell planes and buy cars in return. hence c is correct