Differences in climate among nations
a. could lead to economic efficiency
b. reduce opportunities for gains from international trade
c. lower the terms of trade in favor of warm-climate nations
d. may create opportunities for international trade
e. raise the terms of trade in favor of warm-climate nations
D
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As the price of milk increases, what happens at the original equilibrium in the market for cereal that signals market participants that the original equilibrium must change? (Milk and cereal are complements.)
A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage is created by an increase in demand. D) A shortage is created by a decrease in supply.
Refer to Table 2.1. GDP in 2013 is
A) $243.00. B) $267.50. C) $294.00. D) $302.50.
During World War I (1914–18), hourly wages
(a) decreased in nominal and real terms. (b) increased in nominal and real terms. (c) increased in nominal terms but decreased in real terms. (d) decreased in nominal terms but increased in real terms.
Melissa is a self-employed lawyer who chooses a higher-priced restaurant 2 miles from home over a cheaper restaurant 15 miles from home. Which of the following is the most likely explanation for her behavior?
a. The opportunity cost of her time is very low. b. She doesn't take travel time into consideration. c. She doesn't like to cook or doesn't know how. d. The prices at the more expensive restaurant understate the opportunity cost of eating there. e. The higher monetary cost of the more expensive restaurant is offset by the higher opportunity cost of the lower-priced restaurant.