Which statement is definitely true about shelter in the above below? 
A. It has a positively sloped section in its demand curve.
B. It is a normal good throughout the range shown.
C. It is an inferior good throughout the range shown.
D. The income and substitution effects must be shown before any of these statements can be definitely true.
Answer: A
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Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money because he could have received a 3% percent return on the $1,000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of
A. opportunity costs. B. imperfect information. C. marginal benefits that exceed marginal costs. D. normative economics.
A rational choice is one that
A) must be made with perfect information. B) is made in the social interest rather than the self-interest. C) creates no costs for the decision maker. D) always turns out for the best for the decision maker. E) uses the available resources to most effectively satisfy the wants of the person making the choice.
Using the supply and demand equations for wheat above, determine how the equilibrium price and quantity vary with an increase in rainfall(r) holding other factors that influence supply and demand fixed
How do the equilibrium price and quantity change with an increase in income(I). Answer this comparative statics question using calculus.
If the economy experiences inflation and economic growth, this means that aggregate demand grows by more than aggregate supply
a. True b. False Indicate whether the statement is true or false