Maggie buys peanut butter and jelly, both of which are normal goods. When the price of peanut butter rises, the income effect induces Maggie to buy ________ peanut butter and ________ jelly.
a. less, less
b. more, more
c. more, less
d. less, more
Ans: a. less, less
Economics
You might also like to view...
Which of the following individuals is part of the labor force?
A. The CEO of General Motors B. A retired schoolteacher C. A stay-at-home mom D. A woman serving seven years in the penitentiary for selling drugs
Economics
When the nominal exchange changes from 110 yen per dollar to 120 yen per dollar, the dollar has:
A. depreciated. B. become overvalued. C. become undervalued. D. appreciated.
Economics
Economic models do not reflect the full complexity of reality, but instead are based on:
A. Simplifications B. Tradeoffs C. Value judgments D. Predictions
Economics
Why do college graduates earn higher wages than non-graduates?
What will be an ideal response?
Economics