A price change would have the smallest income effect on a
A. bicycle.
B. pair of shoes.
C. pack of chewing gum.
D. pickup truck.
Answer: C
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If insurance is available on an activity:
A) more of that activity will occur B) less of that activity will occur C) investors will be less likely to hedge D) it increases the risk of engaging in that activity
In the arena of trade policy, the battle often seems to be between ________ laws that increase protectionism and ________ agreements that try to reduce protectionism.
a. national; national b. international; international c. national; international d. international; national
If the price of coffee decreases, the demand curve for tea (a substitute good) will
a. remain unchanged. b. shift to the right. c. shift to the left. d. do none of the above
An In the News article titled "U.S. Winemakers Hurt by Imported Wine" discusses foreign wine sold in the U.S. market. California grape growers' main complaint was that
A. California wineries were not buying domestic grapes but were selling wine and calling it "100% pure American." B. The growing strength of the dollar makes it hard to compete C. The weather had hurt their business. D. The state had removed all subsidies due to the financial crisis that had left the budget in disarray.