DO NOT EXPLAIN JUST CHOOSE A, B, C, OR D

Jason decided to hang out with his friends instead of taking an extra shift at his job. The wages he gave up to be with his friends are an example of:

Select one:

a.

Sunk cost

b.

Equilibrium

c.

Opportunity cost

d.

Utility

Toyota, a Japanese firm, produces a $25,000 car in its plant located in South Carolina, U.S. How does is factor into GDP?

Select one:

a.

$25,000 is added to both U.S GDP and Japan's GDP

b.

$25,000 is added to U.S. GDP

c.

$25,000 is added to Japan's GDP

d.

Nothing is added to either country's GDP

The term "institutions" as used in economics is best defined as

Select one:

a.

The history of society that teaches us what works and what doesn't

b.

The rules agreed upon by society that say how the economic system will function

c.

The people that govern society

d.

The companies that dominate the market

The conditional convergence theory says:

Select one:

a.

Nations will have a similar level of output if they have the same size population

b.

Emerging countries will grow quickly and come to have levels of gdp/capita similar to already developed nations, assuming they have similar steady states

c.

Nations will all eventually agree to begin using the same currency and same language.

d.

All nations will eventually have the same standard of living because the rich nations will be dragged down when they try to compete with poor nations.

The effects of division of labor include:

Select one:

a.

an increase in the rate of innovation.

b.

an increase in unemployment

c.

a decrease in human capital

d.

a decrease in productivity

Suppose the market for bow ties is at an equilibrium, and then there is a decrease in demand. According to supply and demand logic, what will happen to the price and quantity of bow ties as the market adjusts.

Select one:

a.

Price decreases, quantity increases

b.

Price increases, quantity decreases

c.

Price decreases, quantity decreases

d.

Price increases, quantity increases

The macroeconomics variable GDP measures:

Select one:

a.

the sum of all the dollars invested in publicly traded companies

b.

the net value in goods and services purchased by consumers this year

c.

the total of all the transactions where money was exchanged

d.

the market value of all final goods and services produced in a country in a given year