At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future.
B) fewer consumer goods in the future.
C) fewer consumer goods today.
D) more unemployed resources in the future.
Answer: C
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Suppose that consumer income decreases and that hamburger is an inferior good. Which of the following will occur in the market for hamburger?
A) Market clearing price will rise, and equilibrium quantity will rise. B) Market clearing price will fall, and equilibrium quantity will fall. C) Market clearing price will rise, and equilibrium quantity will fall. D) Market clearing price will fall, and equilibrium quantity will rise.
How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?
a. Aggregate supply will decrease, leading to a decrease in real GDP. b. Aggregate supply will increase, leading to an increase in real GDP. c. Aggregate supply will increase, leading to an increase in prices and smaller GDP. d. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.