The price of a gallon of gasoline in Bonland is $3.20. However, just before the election, the government decides to fix the price of gasoline at $2.80 per gallon. This is an example of a ________
A) positive externality
B) negative externality
C) price floor
D) price ceiling
D
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You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon?
A. $22 B. $8 C. $57 D. $12
Which of the following is a common resource?
a. Golden retrievers b. Jersey cows c. Domestic cats d. Panda bears
Popeye produces 20 cans of spinach in 8 hours. Wimpy produces 15 hamburgers in 10 hours. If each hamburger trades for 1.5 cans of spinach, then
a. Popeye's production and productivity are greater than Wimpy's. b. Popeye's production is greater than Wimpy's, but his productivity is less. c. Wimpy's production and productivity are greater than Popeye's. d. Wimpy's production is greater than Popeye's, but his productivity is less.
Suppose real money demand is 400, real output is 16,000, and the price level is 150. What is the level of velocity in this economy?
A. 4,000 B. 6,000 C. 400 D. 40