If income increases and the demand for bus rides decreases,
A) bus rides are a normal good.
B) consumers are behaving irrationally.
C) bus rides are an inferior good.
D) bus rides are a substitute good.
E) bus rides must be a complement good with some other good.
C
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The short-run shutdown price for a perfectly competitive firm is where price equals
A) minimum ATC. B) AR. C) MR. D) minimum AVC.
According to classical economists, government intervention is:
a. necessary to maintain a stable price level in the long run. b. necessary to maintain a stable price level in the short run. c. necessary to maintain full employment in the long run. d. necessary to maintain full employment in the short run. e. not necessary to maintain full employment.
An unhealthy person would likely choose a medical insurance policy with a
a. low premium and a high deductible. b. high premium and a high deductible. c. high premium and no deductible. d. The unhealthy person would choose not to be insured.
Which of the following is NOT among the economic costs of a college education?
A. The cost of tuition B. The cost of books and fees C. The earnings forgone by spending time in school instead of working for pay D. The cost of room and board