In terms of a percentage change, how much did a country's GDP grow if it produced $200 billion last year and produced $220 billion this year?

10%

Which of the following is a positive economic statement?

An increase in interest rates will increase the demand for new cars

Henry works in a restaurant and makes $35 000 per year. He decides to quit his job and go back to school to become an electrician. What is the opportunity cost of his decision?

the wages he would have earned working in a restaurant

Suppose your friend has invited you for lunch and offers to pay for it and any transportation costs you may incur to travel to the restaurant. Which of the following represent an opportunity cost to you of accepting this "free" lunch?

Whatever else you could have done during the time spent having lunch with your friend

Suppose your friend has invited you for lunch and offers to pay for it and any transportation costs you may incur to travel to the restaurant. Which of the following represent an opportunity cost from society's perspective if you have this "free" lunch?

The alternative uses of the resources used to make the lunch.

A firm has recently developed a web survey to collect information on what its consumers like and do not like about a recent product they introduced on the market. Which of the following basic economic questions does this firm's activity relate to?

What is to be produced?

shaving cream and razors are complementary goods. What would you expect to happen to the equilibrium price and quantity of shaving cream if the price of razors increases?

Price would fall, and quantity would fall.

Suppose that generic drugs are an inferior good. What would you expect to happen to the equilibrium price and quantity of generic drugs if average incomes increase?

Price would fall, and quantity would fall

In 2008 and 2009, the housing market in most Canadian cities experienced a decrease in sales and a decrease in median prices. What are these decreases consistent with?

a decrease in demand

A large factory opens up in a small town and employs a large percentage of the local population. What is the likely effect on the local restaurants?

Prices would rise, and quantity would rise

The current hourly wage rate in the labour market is $15 and the government decides to increase the price floor from $14 to $16. What will be the effect on the labour market?

There will be a surplus of labour

To help the country's low-income earners, the government has decided to implement a price ceiling on food necessities, such as milk and bread. What effect will the price ceiling have on the economy?

There will be shortages and poor people could continue to suffer.

A large factory opens up in a small town and employs a large percentage of the local population. What is the likely effect on the local restaurants?

Prices would rise, and quantity would rise

Consider a local Sunday farmers' market. Joe, a farmer, packs his small truck full of green peppers every Sunday morning and heads down to the market. The market is only open for 4 hours and it takes him about 2 hours to drive to the market from his farm. As well, it is not fuel efficient for him to return with any peppers after the market closes. Which of the following best describes Joe's supply curve for any day he is at the market?

Perfectly inelastic.

Suppose the quantity of movie tickets sold decreases by 20 percent when the price increases by 10 percent. What can you conclude about the elasticity of demand over this price range?

It is price elastic

As price increases by 1 percent, quantity supplied increases by 0.5 percent. What can you conclude about supply?

Supply is inelastic

If we claim that potatoes are inferior, then we are also claiming that the income elasticity of potatoes is:

negative

When Makena's income was $3000 per month, she went to the movies two times per month. Now that Makena's income is $3600 per month, she goes to the movies four times per month. Using the midpoint formula in your calculation, which of the following statements is true?

Makena's income elasticity for the movies is approximately 3.67, and going to the movies is a normal good.

Which of the following best describes the cross-price elasticity between e-readers and e-books?

It is a negative number

A local pizzeria recently realized that, after raising its prices by 10%, its total revenue decreased by 30%. Which of the following is correct regarding the price elasticity of the demand at the point before the price increase? Assume demand is approximately linear and no other determinants of demand changed.

It was elastic