[MUST SHOW WORK]
1. It takes Mom 30 minutes to cook dinner. In the same time, she can iron 6 shirts. Dad takes an hour to cook dinner and 30 minutes to iron a single shirt.
A.Mom should cook dinner and iron; trade is impossible.
B.Dad has an absolute advantage in cooking.
C.Dad should cook dinner; the opportunity cost is only 2 shirts.
D.Dad should cook dinner; the opportunity cost is only 1 shirt.
E.Dad has an absolute advantage in ironing shirts.
2.A good economic model
A.leaves out unnecessary information.
B.is difficult to test.
C.assumes that "other things are unchanged."
D.is the mental equivalent of controlled experiments in a laboratory.
E.does all of the above.
3. [MUST SHOW WORK]
If buyers expect the price of gasoline will be higher in the future, the price of gasoline today ________ and the quantity supplied today ________.
E.falls; is unaffected
4.[MUST SHOW WORK]
If demand increases and supply decreases, this leads to
B.a shortage in the market.
5. [MUST SHOW WORK]
Gina missed her shift at the restaurant in order to attend a soccer game. She paid $30 for the ticket, $20 for parking, and ate $10 worth of popcorn. Had she worked her shift, Gina would have earned $100. Her opportunity cost of attending the game is
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