When the investment is graphed as a function of real GDP
A. it graphs as a vertical straight line.
B. it graphs as a negatively sloped line indicating the inverse relationship between interest rates and investment.
C. it graphs as a horizontal straight line at the level of investment.
D. it graphs as a 45-degree line starting at the indicated level of investment.
Answer: C
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Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is
A) equal to the benefit he gets from the review session. B) the one-hour review session. C) the value of the session minus the $10 he could have earned at his job. D) nothing, because the review session does not cost anything. E) the $10 he could have earned at his job.
The change in price that results from a leftward shift of the supply curve will be greater if
A) the demand curve is relatively steep than if the demand curve is relatively flat. B) the demand curve is relatively flat than if the demand curve is relatively steep. C) the demand curve is horizontal than if the demand curve is vertical. D) the demand curve is horizontal than if the demand curve is downward sloping.
If goods X and Y are complements, then the cross price elasticity of demand between them will be
a. positive. b. negative. c. zero. d. infinity.
A depreciation in the value of the U.S. dollar would:
a. encourage foreigners to travel on American owned airlines. b. make U.S. goods more expensive to foreign consumers. c. decrease the number of dollars it takes to buy a Swiss franc. d. make it more expensive for U.S. citizens to travel abroad.