If air travel and bus travel are substitutes,
a. an increase in the price of bus travel will decrease the demand for air travel.
b. a decrease in the price of bus travel will decrease the demand for air travel.
c. an increase in the price of bus travel will generally have no effect on the demand for air travel.
d. an increase in the price of bus travel will shift the demand curve for air travel to the left.
B
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One of the big ideas that serve as the foundation for the study of economics is that people respond predictably to ______.
a. changes in incentives b. market externalities c. government policies d. intangible benefits
In investment matters, generally young workers compared to older workers will:
A. be more risk-averse. B. be less risk-averse. C. have equal concern for expected return and variability. D. minimize expected return and focus more on variability.
When the nominal exchange changes from 110 yen per dollar to 120 yen per dollar, the dollar has:
A. depreciated. B. become overvalued. C. become undervalued. D. appreciated.
The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions
a. True b. False Indicate whether the statement is true or false