If gas prices today were $3.00 per gallon, in terms of history, this would be
A. near an all-time high in nominal terms.
B. an all-time high in inflation-adjusted terms.
C. about the long-term historical average in inflation-adjusted terms.
D. not an all-time high but rather high in inflation-adjusted terms.
Answer: D
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Which of the following sequences is accurate concerning the money market and aggregate demand?
a. increased price; increased interest rate; higher RGDP; increased money demand b. increased price; lower interest rate; increased money demand; lower RGDP c. increased price; increased money demand; increased interest rate; lower RGDP d. increased price; higher RGDP; increased money demand; lower interest rate
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. What is the price to the worker of consuming an additional hour of leisure?
A. $24 B. $12 C. $7 D. $10
Which of the following is a characteristic of a monopoly firm?
A) horizontal individual demand curve B) barriers to entry C) easy entry and exit D) many buyers and sellers
Suppose that the quantity of hamburgers is measured along the vertical axis and that the number of bags of popcorn is measured along the horizontal axis. The budget constraint has a vertical intercept of 10 hamburgers, and the slope of the line is -1. If the price of popcorn doubles, we know that
A. the vertical axis of the budget line shifts to 5 hamburgers. B. the consumer will buy half as many bags of popcorn as before. C. the new equilibrium will have a marginal rate of substitution of -2. D. the new equilibrium will have a marginal rate of substitution of -0.5.