Suppose that the price of oil increased from $2.00 per gallon to $2.20 per gallon, whereas the rate of inflation is 1%. Which of the following statements is true?

1 The relative price of oil is increasing at a slower rate compared to the average price level and people purchasing oil would be better off.

2 The relative price of oil is increasing at a faster rate compared to the average price level and people purchasing oil would be worse off.

3The relative price of oil is increasing at a faster rate compared to the average price level and people purchasing oil would be better off.

4The relative price of oil is increasing at a slower rate compared to the average price level and people purchasing oil would be worse off.

Real GDP line is below the line for nominal GDP after the year 2012. Which of the following statements must be true?

		This implies that the price level after 2012 was higher than the price level in the base year.
		The U.S. economy experienced a decrease in the goods and services produced within a year after 2012.
		The U.S. economy experienced falling prices after 2012.
		None of the choices.

How are the concepts of opportunity costs and scarcity related to one another?

		Scarcity and opportunity costs are two separate concepts with no link between them.
		Scarcity implies that the opportunity cost of consumption can be negative or zero.
		Due to scarcity of resources, every consumption has an associated opportunity cost.
		Opportunity costs implies that there is no scarcity of resources.

Which of the following people would be made worse off due to high levels of inflation?

		People who own house which is increasing in value at a faster rate than the rate of inflation.
		People who keep their saved money at home instead of keeping them as investments.
		People whose income is adjusted according to the rate of inflation.
		People who borrow money at a fixed rate of interest.

Which of the following is directly included in the calculation for GDP?

		The purchase of battery by Apple for their products.
		The purchase of today's lunch from Taco Bell by you.
		The increase in the value of stock of Apple.
		The purchase of a residential land to build apartments by a construction company.