This graph below shows a consumer facing a choice between a cash gift and merchandise of greater value. 
Show, using a sketch graph, why a consumer prefers a cash gift rather than a larger gift of merchandise.
What will be an ideal response?
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The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that
A. a nation can consume more than it can produce only by going into debt. B. only one of two nations engaged in trade can consume more than it produces. C. both of two nations can consume more than they produce if they engage in trade. D. the production possibilities frontiers of any two nations are identical.
Which of the following is an example of an expansionary monetary policy?
a. A reduction in government purchases of goods and services b. An increase in the discount rate c. An open market sale of U.S. government securities d. A reduction in the required reserve ratio e. A tax cut
Which of the following is included in the study of macroeconomics?
a. Salaries of college professors. b. Computer prices. c. Unemployment in the nation. d. Silver prices.
A bagel shop sells fresh baked bagels from 5 a.m. until 7 p.m. every day. The shop does not sell day-old bagels, so all unsold bagels are thrown away at 7 p.m. each day. The cost of making and selling a dozen bagels is $1.00; there are no costs associated with throwing bagels away. If the manager has 8 dozen bagels left at 6:30 p.m. on a particular day, which of the following alternatives is most
attractive? a. Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen. b. Lower the price of the remaining bagels, but under no circumstances should the price fall below $1.00 per dozen. c. Throw the bagels away and produce 8 fewer dozen bagels tomorrow. d. Starting tomorrow, lower the price on all bagels so they will all be sold earlier in the day.