Which of the following is designated by point B’ in Exhibit 4?
a. Calvin has a higher opportunity cost than Wendy in cloth production.
b. By specializing in food, Wendy can produce 10 pounds of food per day.
c. Together Calvin and Wendy can produce 13 pounds of food per day.
d. Wendy has a higher opportunity cost than Calvin in food production.
b. By specializing in food, Wendy can produce 10 pounds of food per day.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
When a person receives a flu vaccination, the ________ is the additional benefit the person receives from getting the shot
A) marginal private benefit B) marginal external benefit C) marginal social benefit D) marginal social cost E) marginal external cost
Prices of commercial airline tickets (assume that this is a normal good) have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen
Which of the following best explains the falling prices of airline tickets? A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right. B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left. C) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left. D) The demand curve and the supply curve for airline tickets have both shifted to the right.
What is a normal good?
a. A good whose demand increases when income decreases b. A good whose demand decreases when income decreases c. A good whose demand increases when price increases d. Both B&C