Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60 per bag and ham sandwiches cost $2.40 each. Which of the following statements is TRUE for the information given above?
A) Waldo's real income expressed in terms of pretzels is 40 bags of pretzels.
B) Waldo's real income expressed in terms of ham sandwiches is 10 ham sandwiches.
C) The relative price of a ham sandwich in terms of pretzels is 4 bags of pretzels per ham sandwich.
D) All of the above answers are correct.
D
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According to the BEA, in the second quarter of 2011 nominal GDP was $15 trillion and in the second quarter of 2012 nominal GDP was $15.6 trillion. Based solely on this information, from the second quarter of 2011 to the second quarter of 2012
A) real GDP may have increased, decreased, or stayed the same. B) real GDP definitely increased. C) real GDP definitely decreased. D) prices definitely increased.
Which of the following statements is true regarding the opportunity cost of time?
a. Retired people are more likely to visit supermarkets than farmers' markets. b. Students are more likely to visit farmers' markets even during exams. c. Working professionals are more likely to frequent convenience stores. d. The opportunity cost of time for farmers and buyers participating in the farmers' market is usually very high.