Gwen's decision to buy a new television instead of a bicycle for the same price
a. means that opportunity cost is zero since both cost the same amount.
b. would not have involved trade-off and opportunity cost if Gwen had decided to put the money in a bank CD instead.
c. would not imply a trade-off because of scarcity if Gwen were a multimillionaire.
d. means that the opportunity cost to Gwen is the bicycle that she has given up.
d
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Recently a teachers' union argued that the standard of living of teachers working for the school district was falling. The negotiating team for the school board replied that this was not true because the teachers had received significant increases in nominal income through collective bargaining. Could the union statement be correct?
A. Yes, because real income may fall if price increases are proportionately smaller than the increases in nominal income. B. No, because real income may rise if price increases are proportionately greater than declines in nominal income. C. Yes, because real income may fall if price increases are proportionately greater than the increases in nominal income. D. No, because real income may rise if price increases are proportionately greater than the increases in nominal income.
The economic question of what will be produced is
a. primarily answered by the government in a system of pure capitalism b. primarily answered by markets in a command economy c. faced by all economies regardless of their wealth d. does not have to be answered by economies possessing great wealth e. cannot be illustrated by the economic concept of the production possibilities frontier
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Economics is a part of the
A) social sciences. B) natural sciences. C) biological sciences. D) organizational sciences.