The substitution effect takes place as we move



A. upward from I to J.

B. down from J to I.

C. up from J to K.

D. down from K to J.




A. upward from I to J.

Economics

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In 2010 the family mean income of householders aged 15-24 years was approximately

A) $11,000. B) $21,000. C) $31,000. D) $41,000. E) $51,000.

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A firm's ______ shows the least-cost input combinations at all possible levels of output for fixed input prices.

A. cost function B. output expansion path C. isocost line D. efficient production frontier

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Which of the following lags makes stabilization policy more problematic?

a. expenditure lags b. recognition lags c. policy lags d. All of the above.

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Suppose that firm A obtained a patent for a new medication that cures certain types of cancer. Which assumption of the supply-and-demand model does not hold in this example?

A) Everyone is a price taker. B) Products are homogeneous. C) Trading costs are low. D) Everyone has full information about the price and quality of goods.

Economics