An economy can produce either of these two combinations of goods X and Y: 1,000X and 0Y or 400Y and 0X. Furthermore, the opportunity cost between the two goods is always constant. Which of the following combinations of the two goods, X and Y, is it possible for the economy to produce?
A) 700 units of X and 280 units of Y
B) 600 units of X and 250 units of Y
C) 400 units of X and 150 units of Y
D) 100 units of X and 600 units of Y
E) 300 units of X and 280 units of Y
A
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Which of the following is true?
i. The easier it is to find substitutes for a good, the more price elastic the demand for the good is. ii. The demand for a good is more price elastic the smaller the proportion of income spent on it. iii. If demand is price elastic, lowering the price leads to a decrease in total revenue. A) only i B) only ii C) only iii D) i and ii E) i and iii
Your text refers to airlines as "The Kings of Price Discrimination." Why is price discrimination common in the airline industry?
What will be an ideal response?
Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost
a. True b. False Indicate whether the statement is true or false
Refer to Figure 18.1. Which of the following would most likely cause a shift from AD1 to AD2?
A. A decrease in the money supply through open market operations. B. An increase in transfer payments because of a recession. C. A decrease in government spending. D. An increase in the tax rate.