A consumer buys food (F) and shelter (S). If the consumer's income rises and there is no change in the prices of F or S, the marginal rate of transformation of F for S will
A) increase.
B) decrease.
C) stay the same.
D) change, but there is not enough information to know how.
C
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People buy more of good 1 when the price of good 2 rises. These goods are
A) complements. B) substitutes. C) normal goods. D) inferior goods.
The health maintenance organization that contracts with individual physicians or group practices to provide care for a specified group of enrollees is called
a. a group-model HMO. b. a staff-model HMO. c. a network-model HMO. d. an IPA. e. a direct-contract HMO.
Economics studies how decision makers use scarce resources to satisfy unlimited wants
a. True b. False
Answer the following questions true (T) or false (F)
1. Expansionary monetary policy actions will result in an increase in net farm income as the demand for farm commodities increase. 2. Contractionary fiscal policy actions will result in a decrease in net farm income as the demand for farm commodities decrease. 3. Expansionary monetary policy actions will lead to a growth in farmland values and farm equity as net farm incomes rise and interest rates fall.