If the price of peaches, a substitute for plums, increases the demand for plums will decrease
Indicate whether the statement is true or false
FALSE
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Based on your understanding of your roommate's preferences, you predict that he will select the spaghetti for his lunch at the cafeteria, but instead he chooses the gyros. How do you describe this event in terms of economic theory?
A) Your roommate is irrational. B) Your roommate does not know what is in his own best interests. C) You roommate does not know his own preferences as well as you do. D) You constructed a model that made a prediction, and the prediction was refuted.
Which of the following statements best describes the U.S. high school graduation rate?
a. As recently as 1970, only about half of U.S. adults had at least a high school diploma; by the start of the twenty-first century, more than 90% of adults had graduated from high school. b. As recently as 1980, only about half of U.S. adults had at least a high school diploma; by the start of the twenty-first century, more than 80% of adults had graduated from high school. c. As recently as 1970, only about half of U.S. adults had at least a high school diploma; by the start of the twenty-first century, more than 70% of adults had graduated from high school. d. As recently as 1970, only about half of U.S. adults had at least a high school diploma; by the start of the twenty-first century, more than 60% of adults had graduated from high school.
The official unemployment statistics may exaggerate the significance of unemployment by including the
A. Phantom unemployed. B. High school dropout. C. Discouraged worker. D. Underemployed.
A monopolist can sell 20 toys per day for $8.00 each. To sell 21 toys per day, the price must be cut to $7.00. The marginal revenue of the 21st toy is:
A. -$10 B. -$13 C. +$7 D. +$21