1. Explain which country has the absolute advantage in the production of
2. Using the concept of opportunity cost that you learned in this lesson,
explain which country has the comparative advantage in the production of
scooters. You may incl
Assume an economy that is operating above full employment.
Draw a correctly labeled aggregate demand and aggregate supply graph and show
each of the following:
The long-run aggregate supply curv
The interviewee's age:
the interviewee's political party affiliation:
explain how the interviewee feels about America having a deficit:.
explain the interviewee's beliefs regarding the impact the deficit has on the level of
Scarcity and Opportunity Costs
1. For each of the following, describe the opportunity cost when you decide
to do each activity.
1. Go to the beach or study for an exam
2. Get a job after high school or go to college
3. Leave early for school
1. Define business inventories and explain how they are counted in GDP.
C + Ig + G + (X - M) = GDP = Aggregate Income (Y)
2. Calculate government spending given the following information:
GDP = $123 million
Consumer spending = $72 million
Suppose a market basket of goods and services includes the goods below for two
successive years. What is the consumer price index for 2013? Explain.
2012 Unit Price
2013 Unit Price
Price: Increase/Decrease (select one)
Quantity: Increase/Decrease (select one)
Determinant: One of the determinants for demand (TRIBE) or supply (ROTTEN) that
causes the shift.
a) The price of natural gas, a resource used by manufacturers throughout the