Use the figure below: 
If good skiing costs $100 per day and horseback riding costs $50 per day, if you have $250 to spend which indifference curve would maximize your utility?
A. Curve A
B. Curve B
C. Curve C
D. None of these curves
Answer: C
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Courts generally use the ________ when determining the value of human life in wrongful death suits
A) compensating differential approach B) actuarial approach C) lost-income approach D) sentimental approach
The theory of consumer choice most closely examines which of the following Ten Principles of Economics?
a. People face trade-offs. b. Governments can sometimes improve market outcomes. c. Trade can make everyone better off. d. Markets are usually a good way to organize economic activity.
Why does the opportunity cost of your college education include money you could have earned working instead of going to college?
A. Because most people who don't go to college do not work. B. Because the best alternative use of your time is working. C. Because people should be productive members of society. D. Because working a full time job takes as much time as going to college.