Reference no: EM133062986
1. Helen and Frank are both given free tickets to see a movie. Both decide to see the same movie. Which of the following statements is correct in relation to their decision:
a.both bear the same opportunity cost of seeing the movie because they are doing the same thing.
b.both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie.
c.it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free.
d.the opportunity cost of seeing the movie is zero because the tickets were free.
2. In December, buyers in the wool market expect that the price of wool will fall in January. What happens in the wool market in December, holding everything else constant?
a.The demand curve shifts to the right.
b.The quantity supplied increases.
c.The quantity demanded decreases
d.The demand curve shifts to the left.
3. Which of the following expenditures is for an intermediate good?
a.The government buys new tyres for its military vehicles.
b.You buy new tyres for your used car.
c.An Australian tyre firm sells new tyres to Indonesia.
d.Holden buys new tyres to put on the cars it is building.