While opportunity cost is subjective, in some circumstances the money paid for goods and services is a good approximation of their opportunity cost
Indicate whether the statement is true or false
true
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Suppose the income-consumption curve for goods X and Y is upward sloping. If the price of good Y increases and the income-consumption curve rotates in clockwise fashion, then we know that:
A) X and Y are complements. B) X and Y are both inferior goods. C) X and Y are substitutes . D) Y is an inferior good.
Subsidies paid to the health care industry for Medicare patients are paid by
A) Congress. B) the Teamsters union. C) current taxes. D) the Federal Reserve.
If a private market determines the quantity of smallpox vaccinations, which of the following is true?
a. The equilibrium quantity is too low for efficiency. b. The equilibrium price and quantity are too high for efficiency. c. The equilibrium price is efficient. d. The equilibrium quantity is too high for efficiency. e. The equilibrium price and quantity are efficient.
When the consumer has found the best affordable bundle of goods:
A. the area above the indifference curve that runs through the consumer's best bundle does not overlap with the area below the budget line. B. the area above the indifference curve that runs through the consumer's best bundle does not overlap with the area above the budget line. C. the area above the indifference curve that runs through the consumer's best bundle should overlap with the area below the budget line. D. the area above the indifference curve that runs through any bundle other than the consumer's best bundle does not overlap with the area below the budget line.