Cashews and asparagus are normal goods. When the price of asparagus falls, the substitution effect by itself causes
a. the consumer to feel richer, so the consumer buys more cashews.
b. the consumer to feel richer, so the consumer buys less cashews.
c. cashews to be relatively more expensive, so the consumer buys less cashews.
d. cashews to be relatively less expensive, so the consumer buys more cashews.
c
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If a country's budget deficit decreases, then the exchange rate
a. rises, which raises net exports. b. rises, which reduces net exports. c. falls, which raises net exports. d. falls, which reduces net exports.
Finding the occupation or business activity in which you are relatively more productive helps you earn more money than otherwise would be the case. This reflects the
What will be an ideal response?
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
A) a smaller trade sector B) a higher rate of investment C) higher tax rates D) greater use of taxation to transfer income from the rich to the poor
Factor that always stays the same
a. dependent variable b. independent variable c. constant d. correlation