Please answer the following true or false! Thank you! T F 1. Optimal decision is
ID: 1217637 • Letter: P
Question
Please answer the following true or false! Thank you!
T F 1. Optimal decision is where marginal benefit equals marginal costs.
T F 2. When two parties trade, one must lose.
T F 3. If your wage doubles as all prices double, you are better off.
T F 4. Opportunity cost is what you give up for a choice.
T F 5. The market equilibrium is stable.
T F 6. If the price of cars increases, so does the supply of cars.
T F 7. If technology improves, then supply increases
T F 8. Inferior goods are substandard.
T F 9. If tastes for a good increases, then so does the demand for it.
T F 10. Structural unemployment can be due to changes in technology.
T F 11. Discouraged workers are those in dead end jobs.
T F 12. If the price of oil increases, so does inflation.
T F 13. GDP is the value of all final goods and services produced in a period.
T F 14. Inflation is the percentage change in the average price level.
T F 15. During an expansion GDP is falling.
Explanation / Answer
1. Optimal decision is where marginal benefit equals marginal costs.- True
2. When two parties trade, one must lose.- False
3. If your wage doubles as all prices double, you are better off.- false
4. Opportunity cost is what you give up for a choice.- True
5. The market equilibrium is stable.- false
6. If the price of cars increases, so does the supply of cars.- True (because supply of a good and price are positively related)
7. If technology improves, then supply increases- True
8. Inferior goods are substandard.- false
9. If tastes for a good increases, then so does the demand for it.- True
10. Structural unemployment can be due to changes in technology.- True
11. Discouraged workers are those in dead end jobs.- false (Discouraged workers are those who have given up looking for a job and are not counted as unemployed.)
12. If the price of oil increases, so does inflation.- True
13. GDP is the value of all final goods and services produced in a period.- True
14. Inflation is the percentage change in the average price level.- True
15. During an expansion GDP is falling.- false (GDP increases)