Related to the Economics in Practice on page 203: The price of hot dogs sold from a cart in New York's Central Park is much higher than the standard price elsewhere in New York. Which of the following, if true, would provide the best explanation for this difference?
A. The standard price of hot dogs in New York is higher than the standard price of hot dogs in other cities.
B. Almost all hot dog vendors sell essentially the same product: a standard quality-certified hot dog and two varieties of mustard.
C. Only licensed vendors may sell hot dogs from a cart, and the price of that license is higher for sales in Central Park than it is for sales elsewhere in New York.
D. In Central Park, prices for hamburgers and other foods are typically higher than they are outside of Central Park.
Answer: C
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A good's real price is the:
A. dollar price of the good relative to the average dollar price of all other goods and services. B. average dollar price of the good. C. dollar price of the good relative to the real price of all other goods and services. D. absolute price of the good in dollar terms.
Which of the following is true? a. A good for which the marginal utility of the last unit of a good consumed is greater will provide more total utility from consumption of the good. b. If marginal utility is positive but diminishing, total utility increases with consumption of a good
c. If marginal utility is diminishing, total utility must be diminishing. d. Total utility is equal to the change in marginal utility from consuming an added unit of a product.
The Single European Act
A) created a common currency. B) created a free trade area. C) created a customs union. D) created a common market for capital and labor.
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. An increase in the Z factors shifts the ________ to the ________.
A. IS curve; left B. Fed rule; left C. Fed rule; right D. IS curve; right