Opportunity costs exist for
a. households but not businesses or governments.
b. businesses but not households or governments.
c. businesses and households but not governments.
d. households, businesses, and governments.
d
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Printing money to meet government budget deficits:
A) helps combat inflation. B) increases real income. C) increases the demand for money. D) acts as a tax on the citizens in an economy.
When the price level changes from PL2 to PL1, what happens to the quantity of real GDP that suppliers are willing and able to supply?
a. It increases from RGDP2 to RGDP1.
b. It increases from RGDP1 to RGDP2.
c. It decreases from RGDP1 to RGDP2.
d. It decreases from RGDP2 to RGDP1.
Recall the Application about fire protection and the median-voter rule to answer following question(s).In the Application, a community will choose to purchase a firetruck and lower their fire rating if:
A. the decrease in the average fire insurance premium exceeds the increase in the average tax liability resulting from the purchase of the fire truck. B. the increase in the average fire insurance premium exceeds the increase in the average tax liability resulting from the purchase of the fire truck. C. the decrease in the average fire insurance premium less than the increase in the average tax liability resulting from the purchase of the fire truck. D. the decrease in the average fire insurance premium less than the decrease in the average tax liability resulting from the purchase of the fire truck.
Assume that airline tickets are a normal good. Prices of commercial airline tickets have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen. Which of the following best explains the falling
prices of airline tickets? A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right. B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left. C) The demand curve and the supply curve for airline tickets have both shifted to the right. D) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left.