Which of the following statements is true?
A) If higher water prices encourage a landlord to place bricks in the water tanks of his toilets to reduce water usage, then for him bricks are substitutes for water.
B) If higher gasoline prices encourage a potential vacationer to stay at home and read a good book by the fire, rather than drive through the country, then for her firewood is a substitute for gasoline.
C) Both A and B are true.
D) None of the above are true.
C
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An economic system is the organizations and methods used to determine:
a. what goods and services are produced. b. how goods and services are produced. c. for whom goods and services are produced. d. all of these.
Which of the following is true?
A) Voters have a strong incentive to make well-informed choices when voting in state and federal elections. B) Policies favored by a majority will assure that resources are allocated efficiently. C) The rational ignorance effect indicates that voters have very little incentive to be well informed when making political choices. D) Political action is based on voluntary exchange and mutual agreement.
Which of the following examples is most typical of monopolistic competition?
a. ARD, Inc. competes with six other firms in the paper towel market. b. Tropics, Inc. is the only producer of guava in the international market. c. Glow, Ltd. and SolarMax, Inc, are the two major producers of solar panels. d. TropicFreeze, Inc. remains the sole producer of papaya ice cream.
Frictional unemployment is the type that arises due to recessions.
Answer the following statement true (T) or false (F)