Which of the following are the best examples of substitute goods?
a. personal computers and computer software programs
b. milk and cookies
c. Packard Bell and IBM personal computers
d. hot dogs and mustard
e. contact lenses and lens cleaning solutions
C
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The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What change in quantity best represents his income effect?
A) 3 B) 10 C) 15 D) 7
The business cycle that results from the election campaign of incumbent politicians is called a:
a. monetary business cycle. b. time consistent business cycle. c. political business cycle. d. real business cycle. e. historical business cycle.
The demand for grape-flavored Hubba Bubba bubble gum is likely
a. inelastic because there are many close substitutes for grape-flavored Hubba Bubba . b. elastic because there are many close substitutes for grape-flavored Hubba Bubba. c. inelastic because the market is broadly defined. d. elastic because the market is broadly defined.
Suppose you have a choice between receiving a lump-sum payment of $10,000 today or four annual payments of $2,750 (with the first payment one year from today). Of the following, which is the lowest annual interest rate at which you would prefer the lump-sum payment over the four annual payments?
a. 2% b. 5% c. 7% d. 10%