For consumers, oranges and bananas are substitutes. Hence if the price of an orange rises, the demand for Question 11 options:
A. bananas increases.
B. oranges increases.
C. bananas decreases.
D. oranges decreases.
A. bananas increases.
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Industries often lobby against the removal of regulations because
a. the regulations often enforce a de facto cartel agreement. b. their customers would be made worse off without government-proscribed standards. c. the largest firms could then dominate the industry. d. deregulation would cause higher entry prices for new firms.
Workers work for after-tax wages, thus an income tax represents a reduction in the effective wage rate
a. True b. False
In the long run, when an increase in the quantity of output decreases average total cost, this is called:
A. constant economies to scale. B. diseconomies of scale. C. minimum average total cost. D. economies of scale.
Home price escalation in the U.S. during 2005 fueled booms in
A. Iraq and Afghanistan. B. mortgage foreclosures and home demolition. C. home building and home equity lines of credit. D. stocks of dot com startups in Silicon Valley and U.S. government bonds.