Which of the following is most consistent with the basic postulate of economics: changes in incentives exert a predictable impact on human behavior?
A) People will consume more beef if the price increases from $1 to $2 per pound.
B) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
C) People will buy less gas if the price of gas increases by $0.50 per gallon.
D) People will buy more milk at a price of $3 per gallon than at $2 per gallon.
C) People will buy less gas if the price of gas increases by $0.50 per gallon.
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Refer to the above figure. A movement from B to D would be a result of
A) an increase in the quantity of money in circulation. B) an increase in the marginal income tax rate. C) an increase in labor productivity. D) an increase in government expenditures.
If the market demand for oranges is relatively inelastic with respect to price, orange consumers
A) pay no attention to price in their purchasing decisions. B) will buy fewer oranges at any higher price and will spend less money on oranges. C) will buy fewer oranges at any higher price but will spend more money on oranges. D) will buy more oranges at any higher price. E) will buy more oranges only if their incomes increase.
If Country A exports a good to Country B, who is made better off?
a. The producers in Country A and the consumers in Country B b. The consumers in Country A and the consumers in Country B c. The producers in Country A and the producers in Country B d. The consumers in Country A and the producers in Country B e. Only the consumers in Country A will benefit from this trade agreement
The first structured investment vehicle (SIV) was set up by ________ in 1988
A) J.P. Morgan B) Chase C) Citigroup D) Goldman Sachs