The above figure shows the market for hamburger. Which figure shows the effect of an announcement by the U.S. Food and Drug Administration (FDA)that eating hamburger causes early death?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
B
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When variable A rises by 10 units, variable B rises by 15 units. The slope of the line describing this relationship is
A. always 2/3. B. either 2/3 or 1.5, depending on which variable goes on which axis of the graph. C. either 1.5 or ?1.5, depending on which variable goes on which axis. D. always ?1.5.
Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays
Indicate whether the statement is true or false
Ceteris Paribus, if current output has fallen below potential ________
A) a positive inflation gap will ensue B) it is likely that the equilibrium real rate has fallen below the policy rate C) a negative unemployment gap will ensue D) it is likely that the equilibrium real rate has risen above the policy rate E) none of the above
The opportunity cost of slowing global warming by reducing carbon dioxide emissions is
a. extremely high because policies that would significantly reduce emissions will adversely affect economic growth. b. insignificant compared to the probable impact of warming from those emissions. c. irrelevant because each aspect of the environment is important enough to justify full protection from environmental change, at whatever cost is necessary. d. zero because fuel cost savings alone will offset all opportunity costs.