Assume that coffee and tea are substitutes. When the price of coffee increases
A) the supply of tea increases.
B) the demand for tea decreases.
C) the demand for tea increases.
D) the supply of tea decreases.
C
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Which of the following examples correctly identifies preference reversals?
A) Alice starts using public transport when the price of gasoline increases. B) Sarah's consumption of coffee increases substantially when the price of tea increases. C) Terry decides on Monday that he would join music classes from Thursday, but refuses to do so on Thursday. D) The extra utility that Tim derives from consuming additional units of ice cream decreases as he consumes more ice cream.
Lily has $10 to spend each week on fish and chicken. Fish costs $2 a serving and chicken costs $3 a serving. The table shows Lily's marginal utilities of fish and chicken. Lily will consume ________ servings of chicken and ________ of fish each week
A) 4; 0 B) 1; 3 C) 0; 5 D) 2; 2
In order to compute national income from GDP,
a. national income is first calculated, and then depreciation of capital and indirect business taxes are subtracted from it to get GDP. b. GDP is first calculated, and then gross private domestic investment is subtracted from it to get national income. c. GDP is first calculated, and then capital depreciation and proprietors' income are subtracted from it to get national income. d. GDP is first calculated, and then depreciation of capital is subtracted from it to get national income.
A comparative advantage in the production of oil is held by
A. Australia.
B. the United States.
C. both countries.
D. neither country.