Fiona consumes pizzas and soda with her weekly income of $50 . Suppose pizzas cost $10 and sodas cost $2 . If the price of pizzas rises to $12, then her opportunity cost of consuming a pizza will increase to:
a. 5 sodas
b. 6 sodas.
c. 10 sodas.
d. 12 sodas.
b
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The value added method to measure GDP does not avoid double counting
a. True b. False Indicate whether the statement is true or false
An increase in deficit spending tends to raise interest rates, thereby resulting in a multiplier effect that is higher than what would be associated with an equivalent increase in consumption spending
a. True b. False Indicate whether the statement is true or false
The average product of labor is
A. the percentage change in output divided by the percentage change in labor. B. the change in output that results from an increase of labor by one unit. C. the output produced by a worker of average quality. D. total output divided by total labor.
Simon Kuznets argues that changes in quantities of labor and capital account for:
a. decrease in economic growth. b. one tenth of the increase in economic growth. c. all of the increase in economic growth. d. most of the inflation in our economy.