Refer to the information provided in Figure 3.4 below to answer the question(s) that follow.
Figure 3.4Refer to Figure 3.4. If consumer income increases, the demand for tuna fish sandwiches shifts from D0 to D1. This implies that tuna fish sandwiches are a(n)
A. complementary good.
B. substitute good.
C. normal good.
D. inferior good.
Answer: C
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According to the Hotelling Principle, the price of an nonrenewable resource
A) falls slowly over time. B) falls at a rate equal to the interest rate. C) rises at a rate equal to the interest rate. D) remains constant over time.
If an industrial union would strike if it does not receive a particular wage rate, then the supply curve of labor in this market
a. is horizontal at that particular wage rate until it intersects the original supply of labor curve b. is vertical at that particular wage rate until it intersects the original supply of labor curve c. shifts to the left d. disappears e. slopes downward
YearCPI200594200699200710020081042009117Using the information in the table shown, what can be said about the rate of inflation?
A. Deflation occurred until 2009, then inflation occurred. B. Inflation was the largest from 2005 to 2006. C. Deflation occurred before 2007, then inflation occurred. D. Inflation occurred every year from 2005 to 2009.
Initially, a consumer is at an optimum. Then the price of Y increases. Consequently
A) MUX/PX < MUY/PY. B) MUX/PX > MUY/PY. C) MUX/PX = MUY/PY. D) MUX > MUY.