In Brazil, the income elasticity of demand for dairy is 0.7 and for fruit and vegetables it is 0.5. These elasticities mean that if the income of Brazilians decreases, they will purchase ________ dairy and ________ fruits and vegetables
A) less; less
B) more; more
C) more; less
D) less; more
A
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The Central Bank of Baltonia decided to lower the interest rate that banks use to make loans to each other when the growth rate of Baltonia's output fell. What will be the effect of this policy on Baltonia's economy?
What will be an ideal response?
Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false?
A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve. C) The indifference curve will be convex to the origin, that is, bowed in toward the origin. D) If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.
The term time inconsistency is used to describe:
A. a situation in which we regret choices we make simply because of when we made the choice. B. a situation in which we change our minds about what we want simply because of the timing of the decision. C. people's inability to correctly predict how their current choices will affect them in the future. D. people's inability to make choices today that determine their actions in the future.
Which of the following statements about medical care costs is true?
A. In the United States, workers are taxed on company-funded medical care expenses. B. In the last decade, medical care costs have risen more slowly than the overall rate of inflation. C. Third-party payers have been able to force large reductions in medical expenses. D. Medical care costs per person have risen faster than income per person.