Which of the following is the best example of the substitution effect?
a. Joe buys fewer apples and more oranges as the result of an increase in the price of apples.
b. Joe buys more apples when his income increases.
c. Joe buys an apple slicer when the price of apples decreases.
d. Joe buys less sugar as the result of an increase in price of apples.
a
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The function of money that enables money to be used for future purchases is called:
A) medium of exchange. B) store of value. C) unit of account. D) measure of power.
Which of the following are options available to government when dealing with monopolies?
a. b, c, and e b. nationalization c. marginal cost pricing regulation d. marginal revenue pricing regulation e. breaking up the firm
Specialization in production
a. raises productivity. b. requires money. c. stimulates exchange. d. All of the above are correct.
Figure 10.5 Federal Outlays, Receipts, and Surplus/Deficit, as a Percent of GDP, 1980-2011
What will be an ideal response?