Assuming that travel from New York to Los Angeles is a normal good, a decrease in consumer income, other things being equal, will:
A. decrease the quantity demanded of travel to Los Angeles.
B. increase the demand for travel to Los Angeles.
C. decrease the demand for travel to Los Angeles.
D. increase the quantity of travel to Los Angeles demanded.
Answer: C
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Refer to Scenario 5.9. The value to Torrid Texts of complete information is
A) $0.25 million. B) $0.5 million. C) $1 million. D) $14.75 million. E) $30 million.
A good way to start every Three-Sector-Model analysis is to:
a. Describe what is happening in the foreign exchange market and then proceed to explain what happens in the other two markets simultaneously. b. Identify the economic effects that result from an economic change and then work your way backward to identify the most important part of the analysis, which is the economic shock that started it all. c. Analyze the chain reaction of economic interactions. d. Gather basic information about the three markets and describe qualitatively the economic setting in each market.
A negative externality exists when ______.
a. a situation occurs where an informed party benefits in an exchange by taking advantage of knowing more than the other party b. the available information is initially distributed in favor of one party relative to another in an exchange c. costs spill over to an outside party who is not involved in producing or consuming the good d. benefits spill over to an outside party who is not involved in producing or consuming the good
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. The fixed payment for this worker is:
A. $60. B. $24. C. $0. D. $7.