The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase.
B) The demand for ferry service would decrease.
C) There would be an upward movement along the demand curve for transits through the Chunnel.
D) There would be a downward movement along the demand curve for transits through the Chunnel.
A
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Hong Kong is an example of an economy that
A) does not experience economic growth because it is not a democracy. B) experiences economic growth in spite of the fact that is lacks democratic freedom. C) grows more slowly than other Asian countries because property rights are not valued. D) needs to promote investment so that economic growth can occur. E) lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.
Authoritarian political regimes
What will be an ideal response?
. Fill in the blanks. For an inferior good, the income effect is _________, and the substitution effect is _______.
a. positive; positive b. positive; negative c. negative; positive d. negative; negative.
Which of the following is common to all investments?
A. The payment of interest. B. Some price must be paid to acquire them. C. Owners are guaranteed future payments. D. Government insurance backs them.