Domestic fiscal stimulus is more likely to lead to ________ when production is outsourced.
A. increased inflation
B. decreased inflation
C. increased imports
D. decreased imports
Answer: C
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Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:
A. consumer demand for wheat to fall. B. the supply of ethanol, a corn-based product, to increase. C. the supply to fall as farmers plant more of other crops. D. the supply to increase as farmers plant more corn.
Use the following information to answer the next question.Maya purchases only three products; orange juice, prepared meals, and on-demand episodes of her favorite shows. Each week she purchases 2 bottles of orange juice, 14 prepared meals, and 8 on-demand episodes. The prices of bottles of orange juice, prepared meals, and on-demand episodes for four different years are shown in the table below.YearPrice of Orange JuicePrice of Prepared MealsPrice of On-Demand Episodes1$2$6$102$6$5$123$4$7$134$4$8$11Based on this information, which of the following statements is true?
A. The cost of Maya's purchases increased in Year 2 and Year 3, but decreased in Year 4. B. Because the price of one of the goods has gone down each year, the cost of Maya's purchases has gone down each year. C. Inflation means that all prices have gone up, so there is no inflation in any year. D. There has been inflation in every year.
Refer to the diagram. The equilibrium price and quantity in this market will be:
A. $1.00 and 200.
B. $1.60 and 130.
C. $0.50 and 130.
D. $1.60 and 290.
Economists believe:
A. every choice has an opportunity cost. B. sunk costs are a figment of most people's imagination. C. every choice has a sunk cost. D. only some choices have an opportunity cost.