Which of the following will lead to a change in the opportunity cost of buying a pen and a pencil?
A) An increase in the consumer's income
B) A decrease in the consumer's income
C) A twofold increase in the prices of both pens and pencils
D) A twofold increase in the price of pens and a threefold increase in the price of pencils
D
You might also like to view...
If you withdraw currency from your bank savings account, you are
A) increasing M1, decreasing M2. B) increasing both M1 and M2. C) decreasing both M1 and M2. D) not affecting M1 or M2. E) increasing M1 but not affecting M2.
Answer the following statement true (T) or false (F)
1) Allocative efficiency occurs where (for the last unit) maximum willingness to pay exceeds minimum acceptable price by the greatest amount. 2) Allocative efficiency occurs where the collective sum of consumer and producer surplus is at a maximum. 3) That government that has the smallest budget is the most efficient in the economic sense. 4) A demand curve for a public good is determined by summing horizontally the individual demand curves for the public good. 5) The optimal quantity of a public good occurs where the marginal benefit of the citizen who has the highest preference for the good just equals the good's marginal cost.
When spending and incomes in an economy increase,
A) imports are likely to increase. B) imports are likely to be unchanged. C) imports are likely to decrease. D) exports are likely to decrease.
State at least one economic benefit to increased international trade.
What will be an ideal response?