Nominal GDP is greater than GDP because of the effects of inflation as measured by the GDP chain price index
a. True
b. False
Indicate whether the statement is true or false
True
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Environmental problems result when social costs and benefits are different from private costs and benefits
a. True b. False
If the price of one Weight Watchers frozen dinner is $2 and the price of one dozen jelly doughnuts is $1, which of the following would Kent, a utility-maximizing consumer, buy with his $6?Jelly DonutsFrozen DinnersDozen Consumed per DayTotal utility (Units of utility)Dinners Consumed per DayTotal utility (Units of utility)0000112116221232327346430442530542628636
A. 2 frozen dinners and 2 dozen jelly doughnuts B. 1 frozen dinner and 4 dozen jelly doughnuts C. 6 dozen jelly doughnuts D. 3 frozen dinners
In microeconomic term, the ability of a good or a service to satisfy wants is called:
A. opportunity cost. B. utility. C. profit potential. D. utility maximization.
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State NoName U is:
A. $15,000 B. $60,000 C. $30,000 D. $20,000