Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____
a. complements
b. substitutes
c. inferior goods
d. normal goods
e. luxury goods
c
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Expenditures on social programs, such as health care and income security, constitute more than half of U.S. federal expenditures in 2016.
Answer the following statement true (T) or false (F)
Even if economic theory is based on positive analysis, economists may still disagree with each other because
a. economists tend to have excessive self-interest b. they ignore politics c. they are opinionated d. they may have different values, like everyone else e. they try to be right all the time
How does a decrease in value of a country's currency relative to other currencies affect its balance of trade?
A) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and reduces the balance of trade. B) A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and reduces the balance of trade. C) A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and increases the balance of trade. D) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and increases the balance of trade.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />In this situation, the Nash equilibrium yields a: A. higher payoff than each would receive if each played his dominant strategy. B. lower payoff than each would receive if each played his dominated strategy. C. lower payoff than each would receive if each played his dominant strategy. D. the same payoff that each would receive if each played his dominated strategy.