If the demand for steak (a normal good) shifts to the left, the most likely reason is that
What will be an ideal response?
consumer incomes have fallen.
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Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock markets, and therefore choose to invest in foreign markets
By using all available information as they act to achieve their goals, these investors are exemplifying the economic idea that A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.
Eliminating important details in economic analysis is necessary to understand the complexity of the economy.
Answer the following statement true (T) or false (F)
Your neighbor in an apartment complex plays his music very loudly late at night, which makes it difficult for you to get to sleep. You offer the neighbor $50, the monetary value you put on your sleep, to never play his music between midnight and 7 AM. By doing so
A. you have indicated a willingness to make the external cost a social cost. B. you have indicated the cost of the externality. The externality is not internalized even if he accepts your offer. C. you have indicated the cost of the externality, which internalizes the externality. D. you have failed to bring about an efficient solution since you should have complained to the police.
The largest in-kind transfer program in the United States is (are)
A. SNAP. B. Welfare. C. Medicare and Medicaid. D. the Housing Program.