Economists typically consider the United States to be closer to the A. Command Economy end of the spectrum. B. Market Economy end of the spectrum. C. Traditional Economy end of the spectrum. D. Zero Economy end of the spectrum. The branch of considers broad issues impacting the economy as a whole, for example, growth, unemployment, inflation, and the trade balance. A. zero economics B. macroeconomics C. microeconomics D. mathematical economics When considering sunk costs, a firm should A. forget about errors made in the past, because the sunk costs cannot be recovered. B. disregard what will happen in the future when making decisions. C. avoid giving up on a product because it spent so much money developing the product. D. ignore sunk costs. Assume that a consumer can buy only two goods, C and D, and has an income of $60. The price of C is $30 and the price of D is $10. What is the slope of the budget line if C is measured horizontally and D is measured vertically?A. 3.U[l B. 421.33 C. GED-l] D. 1D.[l-l] In the production possibilities frontier context, a point directly on the PPF is unaffordable or unattainable. cannot be allocatively inefcient. . is productively efcient. . is the same as a point inside the PPF. Dome Because the production possibilities frontier {also known as the PPF or FPO] takes into account resource specialization [i.e., certain resources are bettersuited to producing certain types of end products) is depicted graphically with a A. bowedout, or concave, shape B. right triangle shape (3. straight line shape D. bowedin, or convex, shape Which of the following is a way in which an economy can shift its production possibilities frontier outward? A. Increases in resource supplies B. A sudden loss of technology (3. Worsening weather inhibiting overall production D. Lower resource use, i.e. underemployment An economy producing at a point inside of its PPF {not directly on the curve) is operating at A. a level involving full employment of inputs and resources B. allocation efficiency C. productive inefficiency D. negative allocation When consumers and firms make choices, they face an opportunity cost, which is associated with A. only the price, in dollar terms, of their choice. B. society not wanting full employment of its resources. C. the value of the next best alternative. D. a lack of scarcity in society. After a small increase in demand and a large decrease in supply, the equilibrium price A. will increase and the equilibrium quantity will increase B. will decrease and the equilibrium quantity will decrease C. will decrease and the equilibrium quantity will increase D. will increase and the equilibrium quantity will decrease If diesel is $4.30 per gallon now, and its price is expected to decrease to $4.05 per gallon next week, this expectation would current demand for diesel, ceteris paribus. A. have an unclear impact on B. not change C. increase D. decreaseIf consumer behavior shifts because people start to perceive fewer health benefits to eating rice, then consumers' demand for rice would likely A. increase due to a change in the number of buyers (there are now more consumers of rice in general). B. decrease due to a change in tastes (consumers now have a weaker preference for rice). C. increase due to a change in the price for related goods (consumers expect bread prices to decrease in the future). D. decrease due to decreasing supply. At a given price, if the quantity supplied is more than the quantity demanded there is a/an of the good in question. A. surplus B. balance C. shortage D. Equilibrium When a market experiences an excess supply, there is pressure on the price, because buyers are able to use competition among sellers in order to purchase at a(n) price. A. downward; inflated B. upward; minimum C. downward; lower D. upward; higher Which of the following is a positive statement?A. There should be an increase in interest rates to enhance the strength of the U.S. dollar. B. Wages should be decreased to a maximum of $14.50 per hour for all employees in Eureka. C. The current California minimum wage is equal to $15.50 per hour. D. Society should prioritize decreasing inflation over decreasing unemployment. A price ceiling means A. government is imposing a legal price that is typically above the equilibrium price B. government wants to create stagflation C. quantity supplied is likely to be higher than quantity demanded D. a shortage is likely to be created The price of soda increases, resulting in a decrease in consumers' purchases of gasoline. Assuming consumers do not view soda and gasoline as related goods (in other words, soda and gasoline are not substitutes or complements for one another in consumption), this example illustrates the A. substitution effect B. income effect C. ambiguity effect D. employment effect The law of explains that there is an upward-sloping curve because as the price for a good increases, producers will want to raise their quantity supplied to earn greater revenues from selling more of the good. A. supply; demand B. demand; supply C. supply; supply D. demand; demandIn the context of the financial markets model, the horizontal axis typically plots the A. rate of return B. price for loans C. price for saving money D. quantity of financial capital or loans made and received In the context of the labor supply and labor demand model, the vertical axis shows the A. number of workers supplying labor B. quantity of labor hired C. number of firms demanding labor D. wage or salary Answer the questions based on the included table. Production Alternatives Type of Production A B C D E Monitors 0 150 225 275 300 TVs 800 750 600 350 0 (Note, answers can be expressed as fractions.) If the economy starts at point D, how many cups does it cost to produce one more bowl? How many bowls does it cost to produce one more cup