Eli can decide between two jobs. One job is harvesting grapes at a local vineyard. He would earn $8 every hour he works there. He could also earn $7 an hour working as a bagger at the local grocery. Assuming Eli can only choose between these 2 jobs and that the benefits of both jobs are the same. If Eli decides to work at the grocery store as a bagger the opportunity cost every hour he decides to work at the grocery is:
A. more than $8.
B. less than $8.
C. exactly $8.
D. exactly $7.
C. exactly $8.
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Under what conditions would an increase in market demand lead to the same long-run equilibrium price?
A. Potential new firms in the market are not attracted by economic profits. B. The firms in the market are part of a constant-cost industry. C. The firms in the market are part of an increasing-cost industry. D. The firms in the market are part of a decreasing-cost industry.
Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles B) wheat C) fast food D) postage stamps
Does inflation result from increases in aggregate demand, short-run aggregate supply, or long-run aggregate supply?
What will be an ideal response?
If steak is a normal good and its price rises:
A) the amount purchased may either increase or decrease depending on the relative importance of the income and substitution effects. B) both the income and substitution effects suggest that less will be purchased. C) the substitution effect suggests more will be purchased, but the income effect suggests less will be purchased. D) the income effect suggests more will be purchased, but the substitution effect suggests less will be purchased.