Demand-pull inflation occurs when
What will be an ideal response?
prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output.
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Use the figure below: 
If good skiing costs $100 per day and horseback riding costs $50 per day, if you have $250 to spend which indifference curve would maximize your utility?
A. Curve A B. Curve B C. Curve C D. None of these curves
Holding supply constant, an increase in demand leads to
A) lower prices and higher quantity supplied. B) lower prices and lower quantity supplied. C) higher prices and higher quantity supplied. D) higher prices and lower quantity supplied.
You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a very good show and place only a $10 value on seeing the remainder of the show. Alternatively you could leave the theater and go home and watch TV or read a book. You place an $8 value on watching TV and a $12 value on reading a book
a. You should stay and watch the remainder of the show. b. You should go home and watch TV. c. You should go home and read a book. d. You should go home and either watch TV or read a book.
The standard economists use to assess whether an activity should be undertaken is
a. majority vote
b. the marginal benefit assessment.
c. the gold standard
d. economic efficiency.