There is a shortage when price is _____ the equilibrium level.
What will be an ideal response?
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Skis and snowboards are close substitute goods. A ________ in the price of snowboards would tend to ________ the demand for ________
A) rise; increase; snowboards B) rise; decrease; snowboards C) rise; decrease; skis D) rise; increase; skis E) fall; increase; snowboards
Personal income less personal taxes is called:
A) personal disposable income. B) national income. C) compensation of employees. D) savings.
Some people view cosmetic surgery (c) and facials (f) as perfect substitutes as measured by the utility function U(c,f) = 5c + 10f. What is the marginal utility of cosmetic surgery?
A) MU = 5. B) MU = 10. C) MU = 15. D) None of the above.
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian workercan produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true? The United States has an absolute advantage:
A. and a comparative advantage in the production of shoes. B. and a comparative advantage in the production of apples. C. in the production of both goods and a comparative advantage in the production of neither good. D. in the production of both goods and a comparative advantage in the production of both goods.