For an addictive drug such as heroin, if the price of heroin increases, then
A) the quantity demanded never changes.
B) the quantity demanded will decrease by a relatively large amount.
C) the quantity demanded will actually increase.
D) the quantity demanded will decrease by a relatively small amount.
D
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If the net benefit of Project A is $10 and that of Project B is $12, which of the following statements is true?
A) An individual can optimize by choosing Project B. B) Switching from Project A to Project B reduces the net benefit by $2. C) An individual can optimize by choosing Project A. D) Switching from Project A to Project B increases the net benefit by $1.2.
Which of the following transactions would be included in Japan's current account?
A) A Japanese citizen purchases 50 shares of Google stock. B) An American citizen purchases a new Toyota made in Japan. C) A Japanese citizen purchases a new Toyota made in Japan. D) An American citizen purchases 50 shares of Toshiba stock.
Requiring that barbers have licenses, restricts entry and
A) raises the average quality of hair cuts. B) increases the costs of getting a hair cut. C) may increase or decrease welfare. D) All of the above.
Many economists believe that the theory of purchasing-power parity describes the forces that determine exchange rates in the long run
a. True b. False Indicate whether the statement is true or false