The Wall Street Journal reports that "hard times aid poultry companies as people eat cheaper fowl." In the language of economists, this means
a. chicken is an inferior good.
b. chicken has a negative substitution effect.
c. chicken has a positive substitution effect.
d. people's tastes change during recessions.
e. chicken has a positive income effect.
a
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Money is scarce, but resources are not.
Answer the following statement true (T) or false (F)
Producing leather creates external costs in the form of water pollution. The figure above illustrates the market for leather. In the absence of any government regulation, how many tons of leather will be produced?
A) 0 tons B) 200 tons C) 300 tons D) more than 300 tons E) None of the above answers is correct.
If a city decides to restrict the number of pizza parlors,
A) the price of pizza will increase. B) pizza parlors will make higher profits. C) total welfare will decrease. D) All of the above.
The system we use to measure the value of an economy is called:
A. national income accounting. B. national economic valuation. C. macroeconomic summation. D. national expenditure accounting.