Behavioral economists think that the less obvious a person's opportunity cost is:
A. the less likely they are to correctly value it.
B. the more likely they will undervalue it.
C. the harder it is to value accurately.
D. All of these are true.
Answer: D
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A consumer might consider in-line skates and elbow-pads to be
A) products with upward sloping demand curves. B) unrelated goods. C) complements. D) substitutes.
Legalizing all forms of illegal activities
A) reduces GDP and reduces the size of the underground economy. B) reduces GDP and increases the size of the underground economy. C) increases GDP and increases the size of the underground economy. D) increases GDP and reduces the size of the underground economy.
According to the graph shown, if this were depicting an autarky, the amount being sold domestically is:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. 60.
B. 115.
C. 160.
D. 90.
Which of the following is an example of a normative, as opposed to positive, statement?
a. The growth rate of the economy last year was higher than any other year in the last decade. b. The federal government reduced spending in the last quarter of the fiscal year. c. The Federal Reserve Bank adjusted interest rates in response to the lower-than-expected growth rate of the economy. d. The federal government should decrease unemployment benefits to stimulate the economy out of the recession.