Instead of spending five hours studying for an economics exam, Oksana could have spent the time at the beach or pick up an extra shift at work. If Oksana enjoys the beach more than the extra money earned from work, what is Oksana’s opportunity cost of studying for the exam?

(Figure: Corn and Oil in the United States and the United Kingdom) Refer to the graphs for the United States and the United Kingdom. If the starting point is point a, what is the opportunity cost of the United States producing 15 more barrels of oil?

As a hurricane approaches, a local government enacts price-gouging laws, i.e., price ceilings on various items—such as gas, bottled water, and nonperishable foods—for which demand spikes during weather-related emergencies. Such laws:

The assumption that people make rational decisions implies that people:

The local government wants to ensure that broadband Internet prices never exceed $100 per month and therefore places a price ceiling at this level. If the current price of broadband Internet is $85 per month, this market exhibits:

Free trade is known as a _____ game because _____.

If a price floor is set below the equilibrium price in a market:

Suppose the United States must give up the production of one gallon of paint to produce one pair of shoes. Mexico must give up two gallons of paint to produce one pair of shoes. According to the principle of comparative advantage:

The gap between the supply curve and the market price is called “producer surplus.”

An example of a government imposed-price ceiling is: