If the price of hamburger increases, it would probably result in ________ in the demand for hamburger buns.
A) a decrease
B) an increase
C) no change
D) random fluctuations
Ans: A) a decrease
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According to the law of comparative advantage, individuals and economies should specialize in producing those goods and services in which they have a comparative advantage
a. True b. False
For two goods, A and B, the rational spending rule is expressed as:
A. MUA = MUB. B. (MUA/PA) = (MUB/PB). C. MUA × MUB = PA × PB. D. (MUA/PB) = (MUB/PA).
Answer the following statement(s) true (T) or false (F)
1. Small, medium, and large taxes all affect deadweight loss equally. 2. A large increase in tax can reduce the quantity exchanged to the point where there is very little tax revenue raised. 3. Subsidies create welfare gains. 4. Price ceilings create deadweight losses. 5. Deficiency payment programs are designed to help poor teachers.
If airlines give passengers under the age of 10 a 25% discount, then this is an example of price discrimination.
Answer the following statement true (T) or false (F)