If the price of orchids falls, the substitution effect due to the price change will cause
A) an increase in the quantity of orchids demanded.
B) an increase in the demand for roses, a substitute for orchids.
C) an increase in the quantity of orchids supplied.
D) an increase in the demand for orchids.
A
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Which of the following statements regarding human capital is INCORRECT?
A) Human capital is the accumulated skill and knowledge of human beings. B) Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned. C) The accumulation of human capital is the source of both increased productivity and technological advance. D) Writing and mathematics, the most basic of human skills, are crucial elements in economic progress.
Which of the following is true at the output level where average total cost is at its minimum?
A) Marginal cost equals average variable cost. B) Average variable cost equals fixed cost. C) Average total cost equals average fixed cost. D) Marginal cost equals average total cost.
The net national product (NNP) can be obtained from the GDP by: a. subtracting depreciation
b. subtracting net income of foreigners and depreciation. c. including the net income of foreigners. d. subtracting depreciation and indirect business taxes.
Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is
a. inelastic, and total revenue will increase b. elastic, and total revenue will increase c. inelastic, and total revenue will decrease d. elastic, and total revenue will decrease e. unit elastic, and total revenue will remain the same