If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of
A. both products to the right.
B. both products to the left.
C. grapefruit to the right.
D. oranges to the left.
Answer: C
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A lump-sum tax, such as a $1000 tax that every family must pay one time, is
A) negatively related to real GDP. B) an autonomous tax. C) a regressive tax. D) a type of income tax.
The marginal social benefit curve for a product can be the same as the good's
A) marginal cost curve. B) supply curve. C) demand curve. D) consumer surplus curve.
The feature of the above figure that indicates that the firm is a perfectly competitive firm is the
A) shape of the total cost curve. B) shape of the total revenue curve. C) fact that the total cost and total revenue curves are farthest apart at output is Q2. D) fact that the total cost and total revenue curves cross twice.
Expected utility is
A) the maximum utility that a person can get from a set of possible outcomes. B) the probability-weighted mean of the utility gained from a set of possible outcomes. C) negative for risk-averse people. D) indeterminant for risk preferring people.