Suppose that the price of fries increases due to a potato shortage. This will cause…

Refer to the figure above. Suppose that the world price of a snowboard is $40. This country will consume ______ snowboards domestically.

Suppose that the price of Burger King’s Whopper Hamburger increases. This will cause…

An example of a price floor is _____.

When the price of a good or service is below the equilibrium price…

Suppose that the flour used to make pizza rises in price. As a result, the equilibrium price of a pizza ______ and the equilibrium quantity ______.

A nation is producing at a productively efficient point on its PPF. A natural disaster reduces the nation’s stock of physical capital. As a result, …

Suppose that this nation is producing at Point A on their PPF. Which of the following statements is NOT true?

A Production Possibilities Frontier (PPF) always slopes down to represent the concept of opportunity cost, and it sometimes is bowed out. The PPF can be bowed out, because… i. the opportunity cost of each good is decreasing. ii. the opportunity cost of each good is increasing. iii. not all resources are equally suited to produce each good.  

Miguel has additional free time this evening. He ranks his alternative ideas for what to do during that free time: first go swimming, second go on a date, and third watch one of Professor Rush’s lectures. He can only do one of these activities. What is Miguel’s opportunity cost of going swimming?