You decide to buy your friend lunch after she helped you study for your exam. This is an example of the economic concept of:
A. marginal utility.
B. reciprocity.
C. altruism.
D. a Veblen good.
Answer: B
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All of the following explain why purchasing power parity does not completely explain long-run fluctuations in exchange rates except
A) some countries impose barriers to trade. B) not all goods and services produced in any country are traded internationally. C) most countries have free markets with little, if any, government regulation. D) consumer preferences for goods and services differ across countries.
Since the Social Security system began in 1935, the number of workers per retiree has
A) stayed roughly the same. B) continually risen. C) continually declined. D) risen and declined with different generations.
If a consumer is initially in equilibrium, an increase in money income will:
A. Move the consumer to a new equilibrium on a lower indifference curve B. Move the consumer to a new equilibrium on a higher indifference curve C. Make the slope of the consumer's indifference curves steeper D. Have no effect on the equilibrium position