Suppose that the equilibrium price of pickles falls while the equilibrium quantity rises. The most likely explanation for these changes is:
A. an increase in the supply of pickles.
B. an increase in demand for pickles.
C. a decrease in demand for pickles.
D. a decrease in the supply of pickles.
Answer: A
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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.
If the Fed is increasing its holdings of government bonds at the same time the federal deficit is increasing,
a. the Fed and the Treasury are, as usual, coordinating activities. b. crowding out is more likely to occur. c. the debt is being monetized. d. the Fed is attempting to increase interest rates.
Which of the following causes the aggregate supply curve to rise?
a. An increase in a nation's level of productivity. b. A decrease in input prices. c. An increase in the value of the domestic currency. d. All of these answers are correct.
According to the text, ________ is perhaps the most critical aspect of a country's economic performance.
A. growth in GDP B. the inflation rate C. the unemployment rate D. the living standard