The economic way of thinking has to do with:
A) analyzing benefits but not costs.
B) analyzing costs but not benefits.
C) making choices at the margin.
D) making the distinction between microeconomics and macroeconomics.
Ans: C) making choices at the margin.
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If the price of $1 is 1.67 Swiss francs, the price of a Swiss franc is
A) $0.33. B) $1.67. C) $2.00. D) $0.67.
The notion that expectations will be identical to optimal forecasts using all available information is known as ________
A) adaptive expectations B) irrational expectations C) rational expectations D) tertiary expectations
In the upward-sloping segment of the aggregate supply curve,
a. increases in output are linked to decreases in the price level. b. increasing prices drag down resource costs. c. producers can hire more workers without having to raise the wage rate. d. the economy can increase aggregate supply without prices going up. e. firms are willing to pay higher wages to get more labor.
When Brenda was in college, she worked part-time delivering pizzas and she ate five boxes of macaroni and cheese per week. After graduation, she became a high school teacher and ate only two boxes of macaroni and cheese per week. From this information,
a. macaroni and cheese is a normal good for Brenda b. the law of demand applies to macaroni and cheese for Brenda c. macaroni and cheese are substitute goods d. macaroni and cheese is an inferior good for Brenda e. Brenda's income elasticity of demand for macaroni and cheese is positive