Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?
A. This economy produces two-thirds oranges and one-third candy bars.
B. This economy produces food valued at $1.20.
C. This economy produces $7.00 worth of food.
D. This economy produces 15 food items.
Answer: C
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a. positive-sum game. b. zero-sum game. c. negative-sum game. d. negative-positive-sum game.
When a country allows trade and becomes an exporter of a good,
a. domestic producers gain and domestic consumers lose. b. domestic producers lose and domestic consumers gain. c. domestic producers and domestic consumers both gain. d. domestic producers and domestic consumers both lose.
If the demand curve is horizontal, then demand is:
A. elastic. B. unit elastic. C. perfectly inelastic. D. perfectly elastic.
Susan is trying to decide whether to quit her $20,000 per year job so she can return to college next year as a full time student. If she goes to college next year, her books and supplies will cost $500, tuition will cost $3,000, and her other expenses (transportation, housing, and food) will increase by $2,000. What is Susan's opportunity cost of attending college next year?
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