Sarah can bake 200 cookies in an hour or watch her favorite tv show. If she chooses to watch her show, her opportunity cost is
a. 200 cookies
b. 100 cookies
c. 150 cookies
d. Need more information
a
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Which of the following is an example of a good with a highly elastic supply curve?
a. luxury goods b. tropical vacations c. pizza d. sports vehicles
Why does entry primarily occur?
a. When a firm has the potential to profit from making a good b. When a firm has the potential to engage in perfect competition c. When a market contains very few competitors d. When goods in a market are in high demand
When indifference curves are bowed in toward the origin,
a. consumers are more inclined to trade away goods they have in abundance. b. an increase in income will shift the indifference curve away from the origin. c. a decrease in income will shift the indifference curve toward the origin. d. Both b) and c) are correct.
Suppose that the government increases taxes. One effect of this change is that it decreases
a) disposable income, which decreases consumption expenditure and aggregate demand b) government expenditure, which decreases aggregate demand c) the size of the government expenditure multiplier d) disposable income which then decreases aggregate supply