Question

1) Leading economic indicators suggest that incomes will be going up next year. In response to these reports, companies are forecasting increased prices for future sales of their goods. As a result of these increases, the supply curve will

shift to the right, causing the equilibrium price to increase.

remain the same, but the equilibrium price will increase.

shift to the left, causing the equilibrium price to increase.

remain the same, but the equilibrium price will decrease.

shift to the right, causing the equilibrium price to decrease.

2) A possible opportunity cost of NOT engaging in free trade is

A)a smaller variety of goods and services. B)economic growth. C) a loss of domestic jobs. D)higher prices. E)import tariff

3) During a job search, individuals will sometimes accept the lower of two competing salary offers. What would best explain this decision?

The lower salary is still better than the salary earned at the previous job.

A person may accept a lower starting salary in order to receive greater future pay increases.

The total benefits of the higher paying job are greater than the total benefits of the lower paying job.

The total benefits of the lower paying job are greater than the total benefits of the higher paying job

Individuals never accept a salary that exceeds their personal values.

Answer 1

Answer 1 : As result of increase in income the supply curve shift to the left causing the Equilibrium price to increase. As income increase supply curve shift to the left because price has been increased and lower quantity has been supplied at new price. Now new Equilibrium set at higher price and lower quantity.

Answer 2. A possible opportunity cost of not engaging in free trade is economic growth . As restrictions on free trade resulted in higher price of the good. Competition has been decreased where as free trade has increased economic of growth and country economic growth.

Answer 3. During a job search, individual will sometimes accept the lower of two compensating salary offers because individual never accept the salary which exceed there personal values. The main reason for choosing low salary job is personal values are conflicting with high salary job . Salary is utmost important but working against personal value cannot estimated.Long term goals of the company also affect the decision. Sometimes satisfaction level of lower Salary is more than higher values.