Repeated hurricanes in Florida have caused some retirees to choose to retire to Arizona instead. Based on this information, retirement housing in Florida and that in Arizona are what kinds of goods?
A. Florida housing has become a luxury good, and Arizona housing had been an inferior good.
B. Florida housing and Arizona housing are complementary goods.
C. Florida housing has become an inferior good, and Arizona housing had been a luxury good.
D. Florida housing and Arizona housing are substitutes.
Answer: D
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According to Martha Olney why did blacks buy on installment at almost twice the rate of whites?
a. Installment contracts were formal and could be used legally for repossession while credit agreements could not. b. Blacks did not like to buy things on credit. c. Blacks were more likely than whites to purchase goods that required installment purchases. d. It was easier for blacks, who tended to have lower income than whites, to pay off their debts on a regular schedule that the installment plans offered.
Assume the graph shown represents Kerri's budget constraint. If Kerri's income to spend on these two items increased, which of the following would be true?
A. Kerri's budget constraint would shift out, maintaining the same slope.
B. Kerri's budget constraint would shift out, and get steeper.
C. Kerri's budget constraint would shift in, maintaining the same slope.
D. Kerri's budget constraint would shift out, and get flatter.
If the people who take early retirement are not counted in the working -age population, then
A) the labor force participation rate would be higher. B) the unemployment rate would be lower. C) the labor force participation rate would be less. D) the unemployment rate would be higher. E) none of the above.
Country X is a small country, with demand and supply functions for the food grains:QD = 150 - 0.6PQS = -40 + 0.5P where QD and QS are in millions of tons and P is the price per ton. The world price of grain is $200 per ton. a. In a situation of free trade, how much food grains would be produced, consumed, and traded in Country X?b. As a response to alleged unfair foreign practices, Country X farmers successfully lobby for a $20 export subsidy per ton of the grains exported. Assuming that imports of food grains are banned, show graphically and explain the impact of the export subsidy on domestic prices, consumption, production, and exports of grain by this country. Also indicate, using your graph, the effects on well-being of domestic producers and consumers and the cost of the
subsidy to the government, as well as the net change in well-being in Country X. For each of these changes, calculate the money amount of each of the changes in well-being and government cost. What will be an ideal response?