When the economy turns down and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which of the following provides one possible explanation for this phenomenon?
A. Air travel and travel by car are complementary goods.
B. Air travel and travel by car are both normal goods.
C. Air travel is a normal good and travel by car is an inferior good.
D. Air travel is an inferior good and travel by car is a normal good.
Answer: C. Air travel is a normal good and travel by car is an inferior good.
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In the final two decades of the twentieth century, average per capita global income
A) decreased by approximately 6 percent. B) increased by approximately 35 percent. C) increased by more than 75 percent. D) remained relatively unchanged.
The table above gives Cathy's total utility from Mt. Dew. Cathy's marginal utility from the 4th Mt. Dew is ________ units
A) 75 B) 90 C) 15 D) 82.5
Why is income and wealth typically used as a measure of the "distribution of economic well being" rather than utility
What will be an ideal response?
The term opportunity cost refers to the
A. Amount of resources used to produce a good but not a service. B. The most desired good or service given up when something is obtained. C. Financial costs of all the factors of production used to produce a good or service. D. Value of every other good given up when a good or service is obtained.