The rate at which Sam is willing to give up a gallon of gasoline to get one more pound of coffee, and remain on the same indifference curve is called his
A) opportunity cost of coffee.
B) opportunity cost of gasoline.
C) personal price of coffee.
D) marginal rate of substitution.
D
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If a political scientist believes Brazil is on the brink of civil unrest, which will significantly reduce next year's coffee supply, he should ________ coffee futures
Other things constant, he is more likely to profit from his decision when ________ people are aware of the possibility of the civil unrest. A) sell; fewer B) buy; fewer C) sell; more D) buy; more
Which of the following is not a characteristic of a public good?
a. It is not excludable. b. It is not diminished or depreciated as additional people consume the good. c. Its benefits cannot be withheld from anyone. d. Because it is a free good, there is no opportunity cost.
Which of the following will cause an increase in the demand for the Venezuelan currency, the Venezuelan bolivar?
A) real interest rates in Venezuela fall B) U.S. residents change preferences in favor of goods produced in the United States C) real interest rates in the United States increase D) none of the above
Which of the following is an example of spending on goods and services in the circular flow model?
A) Belinda purchases a new computer for her tax-preparation business. B) Javier buys 800 square feet of wood flooring for his vacation home. C) Celeste buys fresh herbs at the farmers' market to use in her restaurant. D) Timmy purchases a new examination table for use in his veterinary clinic.