The average price of gasoline in your neighborhood is $2.15 per gallon
Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.06 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you?
A) No, my friend is misled; clearly, the lower-priced gasoline must be of inferior quality and could damage vehicles.
B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station.
C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods.
D) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
B
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During a recession, when unemployment is rising, the number of new jobs created is, typically, ________
A) large, but smaller than the number of jobs lost B) small, and below the number of jobs lost C) small, but higher than the number of jobs lost D) large, but smaller than net entrants to the labor force
Suppose that the Department of Transportation is compiling data on traffic accidents and it wants to present the data in the form of an index. If there were 2,000 accidents in the base year, 2007, and 2,100 accidents in 2008, what is the value of the index for 2008?
a. 95.2 b. 100 c. 105 d. 200 e. 210
Which of the following is correct if there is a favorable supply shock?
a. the short-run aggregate supply curve and the short-run Phillips curve both shift right. b. the short-run aggregate supply curve and the short-run Phillips curve both shift left. c. the short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left. d. the short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right.
Those who believe that overall economic growth is more important than the distribution of income would say that:
A. if the society is not getting richer, then things can never become more equal. B. it is fundamentally unjust for some people to have so much when others have so little. C. if everyone is getting richer, the relative speed of these gains isn't as important. D. All of these are true.