Kariuki decreases his consumption of grapes after his income goes up. For Kariuki
A) grapes and income are substitute goods.
B) grapes and income are complementary goods.
C) grapes are an inferior good.
D) grapes are a superior good.
C
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The design of tax policy is one of the responsibilities of economists who work at the
a. Council of Economic Advisers. b. Federal Reserve. c. Department of the Treasury. d. Congressional Budget Office.
Consider the gamble inherent in looking for an apartment. If the expected value of going to see another apartment is zero, then
A. only risk-averse people will consider seeing another apartment. B. both risk-averse and risk-neutral people will consider seeing another apartment. C. risk-averse people will not consider seeing another apartment. D. risk-neutral people will not consider seeing another apartment.
People who claim to have the ability to accurately predict the future prices of stocks:
A. are strong advocates of the theory of efficient markets. B. are always psychologists. C. should be looked at with skepticism, unless they have information not available to others. D. are unusually lucky, and should be listened to intently.
A derivative is a financial instrument that derives its value from another financial instrument, an underlying asset, or indices.
a. true b. false