Refer to the above table. If the price of a hamburger is $2, the price of a concert ticket is $60, and the consumer has $190, what is the consumer optimum?
A. 6 hamburgers and 0 concerts
B. 0 hamburgers and 6 concerts
C. 5 hamburgers and 3 concerts
D. 4 hamburgers and 2 concerts
Answer: C
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If the economy is in equilibrium with real GDP less than potential GDP, there is ________ gap and a fiscal policy that ________ is appropriate
A) an inflationary; increases aggregate demand B) an inflationary; decreases aggregate demand C) a recessionary; increases aggregate demand D) a recessionary; decreases aggregate demand E) a recessionary; increases potential GDP
A pack of cigarettes costs $6. At the age of 16, some people start smoking one pack per day or 365 packs a year. Assume there is no increase in the future price of cigarettes. How much retirement wealth are these people sacrificing if they smoke until reaching the age of 66?
A) $2,190 (=$6 * 365 days). B) $ 109,500 (=$2,190 * 50 years). C) $6. D) $109,500 plus the compound interest income that could have been earned on the funds over the 50 years.
A higher rent ________ lead to an increase in the quantity of land supplied.
A. will definitely B. will probably C. may D. will not
The aggregate demand curve shows the quantity of domestic product
A. produced at each possible price level. B. demanded and produced at each possible price level. C. that is exported at each possible price level. D. demanded at each possible price level.