Higher education is a normal good. If its price falls,
a. the quantity demanded of higher education will fall.
b. the substitution and income effects work in opposite directions.
c. the income effect is positive.
d. higher education will be a Giffen good.
c
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Regarding the role of saving in economic growth, studies indicate that
A) there is both a positive and a negative relationship between economic growth and saving. B) there is a positive relationship between economic growth and saving. C) there is a negative relationship between economic growth and saving. D) there is no relationship between economic growth and saving.
A firm pays $50,000 for a machine that is used in production for one year, after which it is sold for $40,000 to another firm. The $10,000 difference is
A) an explicit cost of production. B) economic depreciation, an implicit cost of production. C) normal profit. D) not counted as an economic cost of production. E) not an opportunity cost because it is not actually paid.
Tax deductions were significantly ____ under the Tax Reform Act of 1986
a. increased b. decreased c. expanded d. left unchanged for individual taxpayers
Using the above table, what is the total utility of the third piece of pizza?
A. 25 utils B. -25 utils C. 0 utils D. 75 utils