Refer to the information provided in Figure 3.6 below to answer the question(s) that follow.
?Figure 3.6Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by
A. a decrease in the price of popcorn, which is a complement to DVDs.
B. a decrease in the rental price of DVDs.
C. an increase in income if DVDs are a normal good.
D. either A or B
Answer: B
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Refer to the table below. If these are the only three price options for a bushel of corn, what is the value of A?
The above table provides the possible prices for a bushel of corn next year along with the associated probabilities (in percent).
A) 0.55
B) 0.45
C) 0.25
D) 0.30
When there are positive externalities associated with the consumption of a good, we can expect the market
a. demand curve to lie above the social demand curve b. demand curve to lie below the social demand curve c. supply curve to lie above the social supply curve d. supply curve to lie below the social supply curve e. demand curve to lie below the social supply curve
Which of the following statements is not correct?
a. Fixed costs are constant. b. Variable costs change as output changes. c. Average fixed costs are constant. d. Average total costs are typically U-shaped.
In the United States, the idea that the federal government should undertake actions to stabilize business activity
A. has been around since the early 1700s. B. was established in the Declaration of Independence. C. is a relatively new idea that developed in the years during and after the Great Depression. D. developed during World War I.