Orange juice and cranberry juice are substitute goods. An increase in the price of orange juice results in a(n)
a. increase in the demand for orange juice
b. increase in the supply of cranberry juice
c. increase in the quantity demanded of orange juice
d. increase in the demand for cranberry juice
e. decrease in the quantity demanded of cranberry juice
D
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Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:
A. better education, health and life expectancy. B. poverty, depletion of nonrenewable resources, and congestion. C. crime, pollution, and economic inequality. D. unemployment, availability of goods and services, and better education.
Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii
B. i and ii
C. Only iii
D. i and iii
E. Only i
At the output where the combined amounts of consumer and producer surplus are largest
A. marginal benefit exceeds marginal cost by the greatest amount. B. consumer surplus exceeds producer surplus by the greatest amount. C. the areas of consumer and producer surplus necessarily are equal. D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
Economists and accountants usually disagree on the inclusion of implicit costs into the cost analysis of a firm
a. True b. False Indicate whether the statement is true or false