Review Ch. 3, 6-8
Which would most likely be a MICROECONOMIC question?
Should I go to business school or take a job?
French fries and hamburgers are complements in consumption. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium relative price of french fries _____ and the equilibrium quantity _____.
falls; decreases
Since 1960 in the United States, the rate of inflation has:
fluctuated.
In an open economy:
there is trade in goods, services, and/or assets with other countries.
If the cost of the market basket in the base year is $1,000 and the cost of the market basket in 2013 is $1,080, the price index for 2013 is 80.
False
Spending on medical care is the largest portion of the consumer price index.
False
(Figure: The Effect of a Minimum Wage) Look at the figure The Effect of a Minimum Wage. Suppose the labor market is in equilibrium at E when the government imposes a minimum wage of WF. The quantity of labor supplied may_____, resulting in structural unemployment.
increase to QS
The natural rate of unemployment:
is composed of structural and frictional unemployment.