Figure 7.2
Refer to Figure 7.2. Assume that Ashley faces budget line CD with her $120 income. Then the prices of a hamburger and a book are:
A. $2 and $5, respectively.
B. $3 and $6, respectively.
C. $4 and $7, respectively.
D. $5 and $8, respectively.
Answer: B
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The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions
A) "for whom" B) "when" C) "how" D) "why"
Which of the following statements is true?
a. The money price is usually the same as the time price for most consumers. b. The money price of a good is always greater than the time price. c. The money price is always greater for high-wage earners than for low-wage earners. d. The time price is usually less for low-wage earners than for high-wage earners. e. The time price of a good is directly proportional to the money price.
When there are price ceilings, _____ tend to develop.
Fill in the blank(s) with the appropriate word(s).
You have found data that indicates that the income elasticity of demand for generic (unbranded) shampoo is -0.7. You should conclude that generic shampoo:
A. is below its equilibrium price. B. is a normal good. C. is an inferior good. D. has inelastic demand.