Author: Anonymous

Here are three DIFFERENT things you could do if you don’t go with friends to the beach this weekend: go rock climbing at the gym (you value this activity at $70), work on the term paper for your history class (you value this activity at $30), or work two extra shifts at your job (you could earn $50 this weekend). The opportunity cost of going to the beach with your friends this weekend is:

Market for new homes: Suppose construction workers lobby for and receive an increase in their wage rates and more generous fringe benefit packages, which makes it more costly for construction companies to employ these labor services. This event will cause:

Assume the CPI increases from 100 to 120 and a person’s Nominal Income increases from $40,000 to $42,000 over the same period. This person’s Real Income has:

The Latin term ceteris paribus means:

   At which points (combinations of wine and bread) would the economy of France operate efficiently?

Suppose a new law requires all body piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. This law would likely cause:

  IF the price of a tube of lipstick was currently $4, then there would be:

The Full Employment and Balanced Growth Act of 1978 established a goal for inflation of ____. Since the mid-1990s, the Federal Reserve System has used ____ as its inflation goal.

Which of the following is NOT TRUE about the equilibrium price in a Competitive Market?

Visualize a basic supply-and-demand graph representing the market for bananas. Or heck, draw a graph on that piece of scratch paper! Suppose the market supply of bananas increases. The equilibrium price of a banana will ______ because: