Refer to Table 2-7. What is Minnie's opportunity cost of making an umbrella?
A) 1/10 of a hat B) 1/4 of a hat C) 4 hats D) 40 hats
C
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Which of the following statements is NOT true about economic growth?
A) Growth is measured as the overall level of real GDP. B) Growth generally means that overall the members of the nation are better off materially. C) When growth occurs the production possibilities curve shifts outward. D) Growth represents an increase in a nation's productive capacity.
The prisoners’ dilemma illustrates the conflict between ______ and ______.
a. monopoly; perfectly competitive markets b. individual rationality; group rationality c. cartels; non-colluding oligopolists d. game theory; dominant strategies
Based on the table showing global income inequalities, in which of the following countries would the gap between rich and poor be greatest?
a. Venezuela
b. Russia
c. Japan
d. Sweden
What would best explain why a generally risk-averse person would bet $100 during a night of blackjack in Las Vegas?
A) Risk aversion relates to income choices only, not expenditure choices. B) Risk averse people may gamble under some circumstances. C) The economics of gambling and the economics of income risk are two different things. D) Risk-averse people attach high subjective probabilities to favorable outcomes, even when objective probabilities are known.