The price of a loaf of bread is 1.50, the price of a gallon of milk is 3.00, and the price of a pound of butter is 2.40.
The price of a loaf of bread relative to a gallon of milk is ________, while the price of a gallon of milk relative to a pound of butter is ________. A) 0.5; 0.8.
B) 0.5; 1.25.
C) 2.0; 1.25.
D) 2.0; 0.8.
Ques. 2Oil found in Alaska is an example of
A) physical capital.
B) land or natural resource.
C) human capital.
D) labor.
Ques. 3Which of the following is NOT considered to be an economic resource?
A) your economics professor
B) the telephone company repair truck
C) the local gas station
D) a view of the stars on a clear night
Ques. 4Individual decision making by consumers and producers is the focus of
A) macroeconomics.
B) microeconomics.
C) aggregate measures.
D) any economic model.
Ques. 5The price of a new car is 40,000 while the price of a five-year old car of the same brand is 16,000. The next year the price of the new car increases to 44,000 and the price of a five-year old car of the same brand is 17,600.
The relative price of the used car A) decreased by 2,400.
B) decreased by 10 percent.
C) increased by 10 percent.
D) remained constant at 0.4.
Ques. 6Suppose 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.
Ques. 7In economics, physical capital includes
A) money.
B) bank accounts.
C) machinery.
D) shares of stock.
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