Joe's income is $500, the price of food (F, y-axis) is $2, and the price of shelter (S, x-axis) is $100. Which of the following bundles is in Joe's opportunity set?
A) 50 units of food, 5 units of shelter
B) 200 units of food, 2 units of shelter
C) 100 units of food, 1 unit of shelter
D) 150 units of food, 3 units of shelter
C
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Jake opens a pig farm in Idaho. To start his farm, he uses his entire $50,000 of savings from his savings account. The bank was paying him $2,500 interest on his saving. Explain why the $2,500 is one of Jake's costs
What will be an ideal response?
Negative correlation between x and y implies that
A) when x is high, y is high. B) when x is high, y is low. C) xy < 0. D) x/y < 0.
A market is an institution that brings together: a. all the sellers in an economy selling the same product. b. the government and buyers
c. the government and firms. d. the buyers and sellers of goods and services.
If policy makers believe that an inflationary boom is about to begin, the Keynesian view indicates that they should
a. increase the budget deficit. b. increase government spending and hold taxes constant. c. decrease government spending and/or raise taxes. d. hold government spending constant and decrease taxes.