An economist for a bicycle company predicts that, all else held constant, an increase in consumer incomes will increase the demand for bicycles. This prediction assumes that
A. there are many goods that are substitutes for bicycles.
B. there are many goods that are complementary to bicycles.
C. bicycles are a normal good.
D. there are few goods that are substitutes for bicycles.
Answer: C
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The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as
A) human capital. B) labor productivity. C) technology. D) real GDP.
If everyone could participate in the logrolling process at low cost, _____
a. then logrolling would allocate resources efficiently b. the political benefits to politicians would fall c. political exchange would no longer be important d. decision-making costs would be astronomical
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Considering only the labeled points, point c is a possible equilibrium
A) only if it is the endowment. B) only if point a is the endowment. C) if either point a or b is the endowment. D) only if point d is the endowment.