Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. The men are given food when they walk in and the women are given drink. Suppose they have identical preferences where food and drink provide utility U = F?D? . The exchange would be such that
a. both would be guaranteed to be better off than when they entered.
b. both would be guaranteed to be at least as well off as when they entered.
c. the men would end up with more.
d. the women would end up with more.
b
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In recent decades, countries with high economic growth have experienced _______ inequality, and those with low rates of growth have experienced __________ inequality.
A. increasing; decreasing B. increasing; increasing C. decreasing; increasing D. decreasing; decreasing
Economics is primarily the study of: a. how choices are made in a world of scarcity
b. corporate balance sheets and income statements. c. how to operate a business. d. how to make money in the stock market.
Rapid economic growth, stable prices and __________ are the three important macroeconomic goals about which most economists agree
a. an unemployment rate of zero b. zero inflation c. full employment d. a high exchange rate e. low interest rates
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$0.50Friendly Groceries$4.00$2.50 What is the value added of Friendly Groceries?
A. $3.50 B. $2.50 C. $1.50 D. $4.00