Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy's opportunity cost of producing one car is ________ pounds of cheese.
A. 1/250
B. 20
C. 250
D. 1/20
Answer: C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Explain the impact of speculators on markets is similar and how it may be different from the impact of exporters and importers.
What will be an ideal response?
Suppose that the price of capital falls. Does this necessarily imply that the demand for laborwill fall? Explain
What will be an ideal response?
Assume a market that has an equilibrium price of $7. If the market price is set at $3, which of the following is true?
A. Some surplus is transferred from consumers to producers, but total surplus falls. B. All surplus is transferred from producers to consumers, and total surplus stays the same. C. Some surplus is transferred from producers to consumers, but total surplus falls. D. Some surplus is transferred from consumers to producers, causing total surplus to increase.